USD/CAD rebounds from 1.3700 mark as the pair is yet to find the next direction after Fed
- USD/CAD remains indecisive following Fed meeting and mixed pressures on both currencies.
- Key resistance and support levels are seen at 1.3739 and 1.3555, respectively.
- RSI indicates the potential for both upside and downside movements.
USD/CAD has remained in a consolidative phase since the Federal Reserve (Fed) meeting on Wednesday, as the pair has yet to find any clear directional cues.
Since the Fed signaled a pause, the pair remains indecisive. Downside pressure for the greenback comes from the Fed's dovish rate decision on Wednesday and ongoing liquidity injections. On the other hand, the loonie is also under pressure as the Bank of Canada (BoC) paused rates, and falling oil prices weighed.
The first line of resistance is seen at the 1.3739 mark, which is also Wednesday's high. A successful break above the resistance will pave the way toward the March high at the 1.3860 mark.
Downside price momentum is likely to be supported by the 21-day moving average, which is currently pegged around the current price level at 1.3716. A successful break below will pave the way toward the previous day's low at 1.3642. The last line of support is seen at 1.3555, which also coincides with the 50-day moving average.
The Relative Strength Index (RSI) is signaling a flat 50 level, opening the room for both upside and downside possibilities.
Friday’s calendar is due for US Durable Goods Orders for February and S&P Global Purchasing Manager Index (PMI) for Mach. Canada will release its Retail Sales data for January.
USD/CAD: Daily chart
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