Home Forex Edges have reduced to near 1.3500 despite the upward momentum

Edges have reduced to near 1.3500 despite the upward momentum

by SuperiorInvest


  • USD/CAD is looking to end its five-day winning streak on a subdued US dollar.
  • A break below the seven-day EMA at 1.3456 could lead the pair to test the psychological level of 1.3400.
  • The pair could find resistance around the 50% retracement level at 1.3536 followed by support at 1.3550.

USD/CAD is attempting to break its five-day winning streak, trading lower around the psychological 1.3500 level during Thursday’s European session. A break below the psychological level could put pressure on the pair to move in the region around the seven-day exponential moving average (EMA) at 1.3456 in line with the main support at 1.3450.

If USD/CAD pair beyond the support area, it may be affected to approach the psychological level at 1.3400.

However, technical analysis of the Moving Average Convergence Divergence (MACD) for the USD/CAD pair suggests potential bullish sentiment in the market as the MACD line is positioned above the center line and shows a divergence above the signal line.

Additionally, a lagging indicator, the 14-day Relative Strength Index (RSI), is positioned above 50, suggesting confirmation of stronger momentum for the USD/CAD pair.

The analysis suggests that the USD/CAD pair faces potential obstacles on the upside, with the 50% retracement level at 1.3536 serving as an immediate obstacle. In addition, there is a significant resistance level at 1.3550.

If the pair manages to break above the latter, it could encourage bullish momentum, which could lead to an exploration of the psychological resistance area around 1.3600. Another upside move could target the 61.8% Fibonacci retracement level at 1.3622.

USD/CAD: Daily chart

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