The USD/CAD currency pair has recently been testing the critical psychological level of 1.4400, displaying a strong bullish bias. This upward momentum is supported by the 14-day Relative Strength Index (RSI), which remains above the neutral position of 50, indicating ongoing positive market sentiment. In the background, the pair has registered gains over the past two days, maintaining its price close to 1.4400 during the Asian trading session on Wednesday.
Analyzing the daily chart reveals that USD/CAD is situated within an ascending channel, underscoring the prevailing bullish trend. The current positioning above both the nine- and 14-day Exponential Moving Averages (EMAs) further consolidates this bullish outlook, suggesting healthy short-term buying activity. This technical alignment points to the potential for additional upward movement if current trends continue.
As the pair approaches the 1.4400 threshold, it eyes the next significant target at 1.4518, which marks the highest price reached since March 2020. The upper boundary of the ascending channel, estimated to be around 1.4840, may also provide notable resistance if upward momentum persists.
On the support side, the immediate safeguards for USD/CAD are identified at the nine-day EMA near 1.4380 and the 14-day EMA around 1.4377. This area is significant as it aligns closely with the lower boundary of the ascending channel at approximately 1.4350, forming a robust support zone. Should this level hold, it could enable the pair to maintain its bullish trajectory while setting the stage for further advances.
