The USD/CAD pair is holding steady around 1.3800 during Friday’s Asian session, building on recent gains. Analysis of the daily chart indicates the pair is testing the lower boundary of its ascending channel, and maintaining this position could reinforce a bullish trend.
The 14-day Relative Strength Index (RSI) is slightly below 70, signaling ongoing bullish sentiment. However, a rise above 70 may indicate overbought conditions and prompt a potential correction.
On the upside, the pair is testing immediate resistance at 1.3810. A successful return to the ascending channel would bolster the bullish outlook, with targets around the upper boundary at 1.3920 and the 25-month high of 1.3946 reached on August 5.
Support for the USD/CAD is found at the nine-day Exponential Moving Average (EMA) at 1.3741. A drop below this level could trigger a bearish trend, pushing the pair toward former resistance, now support, at 1.3620, followed by the key psychological level of 1.3600.
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