USD/CAD Price Analysis: Hovers near 1.3700 within the ascending channel

USD/CAD could gain ground as technical analysis indicates a recovery of bullish sentiment.
A break above 1.3800 could lead the pair to revisit its five-month high of 1.3846.
A breach below the channel’s lower boundary around 1.3630 could weaken the bullish sentiment.

Akhtar Faruqui FXStreet

USD/CAD consolidates within the ascending channel on the daily chart, with the 14-day Relative Strength Index (RSI) positioned above 50, indicating a recovery of bullish sentiment. The pair edges higher to near 1.3700 during the European session on Tuesday.

Moreover, the Moving Average Convergence Divergence (MACD) line is above the centerline, signaling bullish momentum, although it remains below the signal line. Traders may look for confirmation from the MACD, a lagging indicator, to ascertain the direction of the trend.

The USD/CAD pair may encounter resistance near the psychological level of 1.3800. A breakthrough above this level could pave the way for the pair to revisit its five-month high of 1.3846, followed by the upper boundary of the ascending channel and the psychological barrier of 1.3900.

On the downside, the USD/CAD pair might test the lower boundary of the channel around the 1.3630 level. A breach below this level could exert downward pressure on the pair, leading it toward the region around the psychological support at 1.3600 and the 38.2% Fibonacci retracement level of 1.3591, plotted between the levels of 1.3178 and 1.3846.

The next significant support level lies at 1.3478, should the USD/CAD pair experience further depreciation, followed by December’s low at 1.3178.

USD/CAD: Daily Chart

USD/CAD

Overview
Today last price	1.3697
Today Daily Change	0.0036
Today Daily Change %	0.26
Today daily open	1.3661

Trends
Daily SMA20	1.3674
Daily SMA50	1.359
Daily SMA100	1.35
Daily SMA200	1.3544

Levels
Previous Daily High	1.3678
Previous Daily Low	1.3632
Previous Weekly High	1.3753
Previous Weekly Low	1.3635
Previous Monthly High	1.3614
Previous Monthly Low	1.342
Daily Fibonacci 38.2%	1.365
Daily Fibonacci 61.8%	1.3661
Daily Pivot Point S1	1.3636
Daily Pivot Point S2	1.3611
Daily Pivot Point S3	1.359
Daily Pivot Point R1	1.3682
Daily Pivot Point R2	1.3703
Daily Pivot Point R3	1.3728

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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