- USD/CAD trades in positive territory for two straight days, adding 0.03% on the day.
- The pair is poised to cross above the key EMA; RSI indicator returns to bullish territory above the 50-midline.
- The first upside barrier is located at 1.3460; 1.3395 acts as an initial support level for USD/CAD.
The USD/CAD pair extends the rally around 1.3550 during the early European trading hours on Thursday. The US Dollar (USD) has attracted some buyers following the Federal Reserve (Fed) meeting on Wednesday. The Fed committee agreed unanimously to keep the benchmark Federal Funds Rate at between 5.25% and 5.5% for the fourth straight month. Additionally, the decline in oil prices exerts some selling pressure on the commodity-linked Canadian Dollar (CAD) and acts as a tailwind for the USD/CAD pair.
According to the four-hour chart, USD/CAD is set to cross above the 50- and 100-period Exponential Moving Averages (EMA). The uptrend to resume once the pair can cross above the mentioned level decisively. It’s worth noting that the Relative Strength Index (RSI) returns to bullish territory above the 50-midline, supporting the buyers for the time being.
The upper boundary of the Bollinger Band at 1.3460 will be the immediate resistance level for the pair. Any follow-through buying above 1.3461 will see a rally to the 1.3500 psychological round figure. Further north, the next hurdle is seen at a high of January 25 at 1.3535.
On the other hand, a low of January 30 at 1.3395 acts as an initial support level for USD/CAD. A bearish breakout below the lower limit of the Bollinger Band at 1.3378 will pave the way to a low of January 31 at 1.3358, followed by the 1.3300 round figure, and finally near a low of January 2 at 1.3228.
USD/CAD four-hour chart
-638423649754823221.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.