USD/CAD Price Analysis: Edges lower to near 1.3500 despite a bullish momentum

USD/CAD tries to snap 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 1.3400 psychological level.
The pair could find resistance around 50% retracement level at 1.3536 followed by the support at 1.3550.

Akhtar Faruqui FXStreet

USD/CAD attempts to break its five-day winning streak, trading lower around the 1.3500 psychological level during the European session on Thursday. A break below the psychological level could put pressure on the pair to navigate the region around the seven-day Exponential Moving Average (EMA) at 1.3456 aligned with the major support at 1.3450 level.

If the USD/CAD pair surpasses the support region, it could be influenced to approach the psychological level at 1.3400.

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

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

The analysis indicates that on the upside, the USD/CAD pair faces potential barriers, with the 50% retracement level at 1.3536 serving as an immediate obstacle. Beyond that, a significant resistance level stands at 1.3550.

If the pair manages to break above the latter, it could encourage bullish momentum, potentially leading to an exploration of the psychological resistance region around 1.3600. Further upward movement might target the 61.8% Fibonacci retracement level at 1.3622.

USD/CAD: Daily Chart

USD/CAD: more technical levels to watch

Overview
Today last price	1.3499
Today Daily Change	-0.0013
Today Daily Change %	-0.10
Today daily open	1.3512

Trends
Daily SMA20	1.3336
Daily SMA50	1.3495
Daily SMA100	1.3568
Daily SMA200	1.348

Levels
Previous Daily High	1.3542
Previous Daily Low	1.348
Previous Weekly High	1.3443
Previous Weekly Low	1.3341
Previous Monthly High	1.362
Previous Monthly Low	1.3178
Daily Fibonacci 38.2%	1.3518
Daily Fibonacci 61.8%	1.3504
Daily Pivot Point S1	1.3481
Daily Pivot Point S2	1.345
Daily Pivot Point S3	1.342
Daily Pivot Point R1	1.3543
Daily Pivot Point R2	1.3573
Daily Pivot Point R3	1.3604

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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