USD/CAD Price Analysis: Stays directionless post recent losses, trades near 1.3470
|- USD/CAD grapples to find a direct after registering losses on Thursday.
- The 23.6% Fibonacci retracement at 1.3455 and the major level at 1.3450 could act as the key support levels.
- Technical analysis indicates an upward trend towards the psychological level at 1.3500.
USD/CAD hovers around 1.3470 during the Asian session on Friday, struggling to find a direction amid a stable US Dollar (USD). Traders await the upcoming Personal Consumption Expenditures (PCE) Price Index data scheduled to be released later in the North American session.
The USD/CAD could find the support region around the 23.6% Fibonacci retracement at 1.3455 aligned with the major level at 1.3450. A break below the support zone could put pressure on the pair to punch the 21-day Exponential Moving Average (EMA) at 1.3439.
If the USD/CAD pair crossovers below the 21-day EMA, the pair could test the 38.2% Fibonacci retracement at 1.3402 in conjunction with the psychological support at 1.3400 level.
However, the technical analysis of the Moving Average Convergence Divergence (MACD) for the USD/CAD pair indicates a potential bullish sentiment in the market. This interpretation is based on the positioning of the MACD line above the centerline and divergence above the signal line.
Additionally, the lagging indicator 14-day Relative Strength Index (RSI) is positioned above 50, suggesting the confirmation of stronger momentum for the USD/CAD pair, which could support the pair to approach the psychological level of 1.3500.
A firm breakthrough above the latter could influence the bulls of the USD/CAD pair to explore the weekly high at 1.3534 and the monthly high at 1.3541 followed by the major resistance level at 1.3500.
USD/CAD: Daily Chart
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