USD/CAD Price Analysis: Maintains position above 1.3650 due to weakening bearish bias
|- USD/CAD could extend its gains as the 14-day RSI indicates a momentum shift toward the upside.
- The momentum indicator MACD also suggests a weakening bearish bias as converging below the signal line.
- A break below the 1.3600 could exert downward pressure on the pair.
USD/CAD treads water to continue its gains for the second consecutive session, trading around 1.3680 during the European hours on Wednesday. Analysis of the daily chart suggests a bearish bias for the USD/CAD pair, as it remains within a descending channel. However, the 14-day Relative Strength Index (RSI) has slightly moved above the 50 level, and further upward movement may indicate a weakening of this bearish bias.
The Moving Average Convergence Divergence (MACD) indicator suggests a potential momentum shift for the USD/CAD pair. While the MACD line is positioned below the centerline, it shows convergence below the signal line. A break above the centerline could further weaken the bearish trend.
The USD/CAD pair could find key support around the psychological level of 1.3600 and the throwback support at 1.3590. A break below the latter could exert downward pressure on the pair, leading it to test the psychological level of 1.3500, followed by the lower threshold of the descending channel.
On the upside, the USD/CAD pair could break above the upper boundary of the descending channel, followed by a psychological level of 1.3700 and a pullback resistance of 1.3740. A breakthrough above this resistance could lead the pair to explore the region around the key level of 1.3800, followed by April’s high of 1.3846.
USD/CAD: Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.