USD/CAD Price Analysis: Hovers below 1.3350 followed by the seven day EMA
- USD/CAD trades in positive territory on improved US Dollar.
- A break above 1.3350 could lead the pair to target the psychological level at 1.3400 before the seven-day EMA at 1.3410.
- Technical indicators suggest further decline and testing the weekly low at 1.3330.
USD/CAD rebounds as the US Dollar (USD) attempts to recover losses registered in the previous session. The USD/CAD pair trades below the major resistance at the 1.3350 level. A breakthrough above the latter could influence the USD/CAD pair to rise and target the psychological resistance level at 1.3400 before the seven-day Exponential Moving Average (EMA) at 1.3410.
If the USD/CAD pair surpasses the psychological resistance, it could explore the region around the major level at 1.3450 followed by the 23.6% Fibonacci retracement level at 1.3462.
However, the technical indicator Moving Average Convergence Divergence (MACD) for the USD/CAD pair indicates a potential bearish trend. The MACD line's placement below the centerline, coupled with divergence below the signal line, suggests a likelihood of further decline. This signal implies that the pair may test the weekly low at 1.3330 level.
The analysis introduces a confirmation to the dovish sentiment surrounding the USD/CAD pair, underscoring the significance of the 14-day Relative Strength Index (RSI) falling below 50. Consequently, a breach below the weekly low has the potential to propel the USD/CAD pair towards the 1.3300 psychological threshold.
USD/CAD: Daily Chart
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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.
