During early European trading hours on Friday, the USD/CAD pair continued its upward momentum, hovering around 1.3750. Analysis of the daily chart reveals a nuanced bullish sentiment, albeit with challenges in re-entering a rising channel pattern. The 14-day Relative Strength Index (RSI), holding above the 50 level, indicates sustained bullish momentum, though further price action is necessary for clearer directional signals.
The Moving Average Convergence Divergence (MACD) further supports a bullish outlook, with the MACD line above the centerline and diverging above the signal line. This suggests potential strength to uphold the pair’s return to the rising channel.
In the near term, the USD/CAD pair could test support near 1.3780, followed by a pivotal barrier at 1.3800. A breakthrough above this level might propel prices towards the upper channel boundary at approximately 1.3890. Conversely, downside support is anticipated around 1.3700, coinciding with the 50-day Exponential Moving Average (EMA) at 1.3670. A breach below these levels could lead to a decline towards support near 1.3590.
The USD/CAD’s current technical indicators indicate a dynamic market scenario, where continued monitoring of price movements will be crucial for confirming sustained bullish or bearish trends.
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