- USD/CAD snaps the recent gains on the back of the recent increase in Crude oil prices.
- Technical indicators suggest bullish momentum in market sentiment.
- 1.3650 major level emerges as the support, followed by the 23.6% Fibonacci retracement.
USD/CAD snaps a two-day winning streak on the back of the recent increase in Crude oil prices. However, the pair received upward support after the release of upbeat economic data from the United States (US).
The USD/CAD pair trades lower around 1.3660 during the European session on Friday, lined up with the support at the 1.3650 level, followed by the 23.6% Fibonacci retracement at 1.3616 level.
A decisive break below the latter could open the door for the USD/CAD pair to navigate the region around the psychological level at 1.3600 close to the 22-day Exponential Moving Average (EMA) at 1.3599.
On the flip side, the weekly high at 1.3700 major level could act as immediate resistance, followed by the 1.3750 psychological level aligned to the monthly high at 1.3785.
The Moving Average Convergence Divergence (MACD) line positioned above both the centerline and the signal line suggests a potential bullish momentum in market sentiment.
Additionally, the USD/CAD pair continues to maintain a prevailing bullish momentum, emphasizing a stronger bias. This is evident as the 14-day Relative Strength Index (RSI) remains above the 50 level.
USD/CAD: Daily Chart
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