The USD/CAD currency pair is currently experiencing strong momentum, finding immediate resistance at the nine-day Exponential Moving Average (EMA) around the 1.3885 level. With the 14-day Relative Strength Index (RSI) positioned above the neutral threshold of 50, there is a clear indication of bullish sentiment prevailing in the market. As the pair traded near 1.3880 during the Asian session on Friday, the overall trend suggests an upward consolidation within an ascending channel.
Technical indicators are supportive of this bullish outlook. The nine-day EMA is currently above the 14-day EMA, which usually signals a potential for further price appreciation in the near term. As traders monitor the pair’s progress, attention is focused on the immediate resistance level at 1.3885. If the USD/CAD manages to break through this barrier, it could pave the way for further gains, possibly targeting the key resistance level of 1.3959, the highest point observed since October 2022, achieved earlier this month.
On the other hand, should the pair encounter obstacles or retrace, immediate support is located at the 14-day EMA near 1.3868. A decline below this support level may shift market sentiment and weaken the bullish outlook, exposing the pair to further downside risks. Specifically, a fall through 1.3868 may lead to testing the lower boundary of the ascending channel at around 1.3820.
Overall, market participants are closely watching key levels in the USD/CAD pair, where a break of resistance could signal a continuation of bullish momentum, while breaches of support might indicate a reversal in trend.
