- USD/CAD trades close to 1.3800 after a sharp recovery.
- The USD Index struggles to climb above 106.00.
- USD/CAD continues to move higher in a Rising Channel chart pattern.
The USD/CAD pair hovers near the round-level resistance of 1.3800 after a sharp recovery, which was prompted by hawkish guidance on interest rates from Federal Reserve (Fed) Chair Jerome Powell. The Loonie asset aims for stabilization above 1.3800 as the market mood has turned risk-averse amid caution that the Fed could raise interest rates further.
USD/CAD continues to move higher in a Rising Channel chart pattern in which each pullback is considered as a buying opportunity by the market participants. The 50-day Exponential Moving Average (EMA) at 1.3660 continues to provide support to the US Dollar bulls. Horizontal resistance is plotted from March 10 high at 1.3682.
The Relative Strength Index (RSI) (14) struggles to shift into the bullish range of 60.00-80.00. If the RSI (14) manages to do so, a bullish momentum would get triggered.
Going forward, a decisive break above October 27 high at 1.3880 would expose the round-level resistance at 1.3900, followed by 13 October 2022 high at 1.3978.
In an alternate scenario, a breakdown below October 24 low around 1.3660 would drag the asset to the round-level support of 1.3600. A further breakdown could expose the asset to October 7 low at 1.3570.
USD/CAD daily chart
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