- USD/CAD could breach the key barrier at 1.3550 to test February’s high at 1.3586.
- Traders could await the MACD indicator to confirm a clear directional trend.
- The pair could find immediate support at the psychological level of 1.3500 followed by the 50-day EMA at 1.3475.
USD/CAD moves higher for the second consecutive day, inching higher to near 1.3520 during the European session on Monday. The pair could meet the key barrier at the major level of 1.3550 following February’s high at 1.3586.
A break above the latter could exert upward support to lead the USD/CAD pair to explore the region around the psychological resistance level at 1.3600.
The technical analysis of the 14-day Relative Strength Index (RSI) is positioned above 50, suggesting bullish momentum for the USD/CAD pair.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator for the USD/CAD pair, a lagging indicator, indicates a subdued momentum in the market. This interpretation is based on the MACD line's position above the centerline but resting on the signal line. Traders might prefer to await a clearer directional signal from the MACD indicator before initiating any trading actions.
On the downside, the immediate support appears at the psychological level of 1.3500 followed by the 23.6% Fibonacci retracement level of 1.3489 and the 50-day Exponential Moving Average (EMA) at 1.3475.
The USD/CAD pair could further fall to the major level of 1.3450 before the 38.2% Fibonacci retracement level at 1.3430. A break of this level could put downward pressure on the pair to test the psychological support at the 1.3400 level.
USD/CAD: Daily Chart
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