The USD/CAD pair held steady, maintaining its upward momentum for the second consecutive session, trading around 1.3680 during Wednesday’s European hours. A glance at the daily chart reveals a bearish bias for the pair, as it remains within a descending channel. However, there are indications of a potential shift in sentiment.
Analysis of the 14-day Relative Strength Index (RSI) suggests a slight upward movement above the 50 level, signaling a potential weakening of the bearish bias. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator hints at a possible momentum shift. Although the MACD line currently resides below the centerline, convergence below the signal line suggests a shift in momentum. A break above the centerline could further weaken the bearish trend.
Key support for the USD/CAD pair is anticipated around the psychological level of 1.3600, with additional support at 1.3590. A breach below the latter could exert downward pressure on the pair, potentially leading to a test of the psychological level of 1.3500, followed by the lower boundary of the descending channel.
Conversely, on the upside, the pair may encounter resistance as it attempts to break above the upper boundary of the descending channel. Further resistance levels include the psychological level of 1.3700 and a pullback resistance at 1.3740. A successful breakthrough above these resistance levels could pave the way for exploration of the region around the key level of 1.3800, followed by April’s high of 1.3846.
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