USD/CAD Price Analysis: Rises toward 1.3700 despite a bearish bias

USD/CAD gains ground despite a bearish bias suggested by daily chart analysis.
The momentum indicator MACD also suggests a bearish trend for the pair.
A break above the upper boundary of the descending channel and the psychological level of 1.3700 could weaken the bearish bias.

Akhtar Faruqui FXStreet

USD/CAD halts its three-day losing streak, trading around 1.3680 during the European hours on Tuesday. The appreciation of the pair is attributed to the decline in crude Oil prices, given the fact that Canada is the largest Oil exporter to the United States (US).

The analysis of the daily chart suggests the bearish bias for the USD/CAD pair, as it lies within the descending channel. Additionally, the 14-day Relative Strength Index (RSI) is positioned slightly above the 50 level, further movement may offer a clear directional trend.

The momentum indicator Moving Average Convergence Divergence (MACD) also suggests a bearish trend for the USD/CAD pair as the MACD line is positioned below the centerline and the signal line. However, the convergence below the signal line could lead to a momentum shift. A breakthrough above the centerline could weaken the bearish trend.

The USD/CAD pair could find the key support around the psychological level of 1.3600 and a throwback support of 1.3590. A break below this region could exert downward pressure on the pair to navigate around the significant level of 1.3500. Further support may appear at the lower threshold of the descending channel.

On the upside, the USD/CAD pair tests the upper boundary of the descending channel, followed by the psychological level of 1.3700. A breakthrough above the latter could weaken the bearish bias and 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	1.3679
Today Daily Change	0.0052
Today Daily Change %	0.38
Today daily open	1.3627

Trends
Daily SMA20	1.3662
Daily SMA50	1.3662
Daily SMA100	1.3582
Daily SMA200	1.3575

Levels
Previous Daily High	1.3669
Previous Daily Low	1.3603
Previous Weekly High	1.3735
Previous Weekly Low	1.3615
Previous Monthly High	1.3783
Previous Monthly Low	1.359
Daily Fibonacci 38.2%	1.3628
Daily Fibonacci 61.8%	1.3644
Daily Pivot Point S1	1.3597
Daily Pivot Point S2	1.3567
Daily Pivot Point S3	1.3532
Daily Pivot Point R1	1.3663
Daily Pivot Point R2	1.3699
Daily Pivot Point R3	1.3729

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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