USD/CAD Price Analysis: Holds position above 1.3750 amid resurging bullish sentiment

USD/CAD may continue to advance as technical analysis suggests a resurgence of bullish sentiment.
A break above the 1.3800 level might propel the pair to revisit its five-month high of 1.3846.
The pair could find support around the psychological level of 1.3700 and the 23.6% Fibonacci retracement level of 1.3688.

Akhtar Faruqui FXStreet

USD/CAD trades around 1.3780 during the early European hours on Wednesday, hovering within an ascending channel on the daily chart. The 14-day Relative Strength Index (RSI) also positioned above 50, indicating a resurgence of bullish sentiment.

Additionally, the Moving Average Convergence Divergence (MACD) line is above the centerline, suggesting bullish momentum, although it remains below the signal line. Traders might seek confirmation from the MACD, a lagging indicator, to validate the trend direction.

The USD/CAD pair could encounter resistance around the psychological level of 1.3800. If it surpasses this level, it may revisit its five-month high of 1.3846, followed by the upper boundary of the ascending channel near 1.3899, the highest level not seen since November.

Conversely, on the downside, the USD/CAD pair could navigate the region around the psychological level of 1.3700, followed by the 23.6% Fibonacci retracement level of 1.3688, which is drawn between the levels of 1.3178 and 1.3846. A break below this level could lead the pair to test the lower boundary of the channel around the 1.3640 level.

USD/CAD: Daily Chart

USD/CAD

Overview
Today last price	1.3776
Today Daily Change	-0.0002
Today Daily Change %	-0.01
Today daily open	1.3778

Trends
Daily SMA20	1.3685
Daily SMA50	1.3595
Daily SMA100	1.3502
Daily SMA200	1.3547

Levels
Previous Daily High	1.3785
Previous Daily Low	1.3657
Previous Weekly High	1.3753
Previous Weekly Low	1.3635
Previous Monthly High	1.3846
Previous Monthly Low	1.3478
Daily Fibonacci 38.2%	1.3736
Daily Fibonacci 61.8%	1.3706
Daily Pivot Point S1	1.3695
Daily Pivot Point S2	1.3612
Daily Pivot Point S3	1.3568
Daily Pivot Point R1	1.3823
Daily Pivot Point R2	1.3868
Daily Pivot Point R3	1.395

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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