- USD/CAD continues to lose ground on the subdued US Dollar.
- Technical indicators suggest the confirmation of further decline towards the major level at 1.3250.
- A break above 1.3300 could provide support for the pair to aim the seven-day EMA at 1.3354.
USD/CAD extends its losing streak for the second consecutive session, hovering around its four-month low at 1.3270 during the European hours on Friday.
The Moving Average Convergence Divergence (MACD) technical indicator for the USD/CAD pair is suggesting a potential bearish trend. The MACD line's placement below the centerline, coupled with divergence below the signal line, indicates a likelihood of further decline.
The analysis further confirms the existing dovish sentiment surrounding the USD/CAD pair, underscoring the significance of the lagging indicator 14-day Relative Strength Index (RSI) falling below 50. This confirmation implies that the pair might extend its decline, potentially reaching the major level at 1.3250 following the psychological level at 1.3200.
The analysis suggests that if there's a break below the psychological level, it could pave the way for the USD/CAD pair to move towards the August low at 1.3179.
The analysis suggests that on the upside, surpassing the psychological level at 1.3300 could provide support for the USD/CAD pair, propelling it upward. The next potential targets include the seven-day Exponential Moving Average (EMA) at 1.3354, followed by the psychological resistance level at 1.3400.
If the pair manages to pass through this psychological resistance, it might explore further upward movement toward the 23.6% Fibonacci retracement level at 1.3424, and eventually, the major level at 1.3450.
USD/CAD: Daily Chart
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