USD/CAD Price Analysis: Maintains position above 1.3650 due to weakening bearish bias

USD/CAD could extend its gains as the 14-day RSI indicates a momentum shift toward the upside.
The momentum indicator MACD also suggests a weakening bearish bias as converging below the signal line.
A break below the 1.3600 could exert downward pressure on the pair.

Akhtar Faruqui FXStreet

USD/CAD treads water to continue its gains for the second consecutive session, trading around 1.3680 during the European hours on Wednesday. Analysis of the daily chart suggests a bearish bias for the USD/CAD pair, as it remains within a descending channel. However, the 14-day Relative Strength Index (RSI) has slightly moved above the 50 level, and further upward movement may indicate a weakening of this bearish bias.

The Moving Average Convergence Divergence (MACD) indicator suggests a potential momentum shift for the USD/CAD pair. While the MACD line is positioned below the centerline, it shows convergence below the signal line. A break above the centerline could further weaken the bearish trend.

The USD/CAD pair could find key support around the psychological level of 1.3600 and the throwback support at 1.3590. A break below the latter could exert downward pressure on the pair, leading it to test the psychological level of 1.3500, followed by the lower threshold of the descending channel.

On the upside, the USD/CAD pair could break above the upper boundary of the descending channel, followed by a psychological level of 1.3700 and a pullback resistance of 1.3740. A breakthrough above this resistance could lead the pair to explore the region around the key level of 1.3800, followed by April’s high of 1.3846.

USD/CAD: Daily Chart

USD/CAD

Overview
Today last price	1.3683
Today Daily Change	0.0007
Today Daily Change %	0.05
Today daily open	1.3676

Trends
Daily SMA20	1.366
Daily SMA50	1.3663
Daily SMA100	1.3583
Daily SMA200	1.3576

Levels
Previous Daily High	1.3699
Previous Daily Low	1.3621
Previous Weekly High	1.3735
Previous Weekly Low	1.3615
Previous Monthly High	1.3783
Previous Monthly Low	1.359
Daily Fibonacci 38.2%	1.3669
Daily Fibonacci 61.8%	1.3651
Daily Pivot Point S1	1.3631
Daily Pivot Point S2	1.3587
Daily Pivot Point S3	1.3553
Daily Pivot Point R1	1.371
Daily Pivot Point R2	1.3744
Daily Pivot Point R3	1.3788

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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