The USD/CAD currency pair is showing gains near 1.3880 during the Asian session on Friday, continuing its upward trajectory. Technical analysis on the daily chart reveals that the pair is consolidating within an ascending channel, signaling a sustained bullish outlook.
The 14-day Relative Strength Index (RSI) remains above the 50 threshold, supporting the prevailing positive sentiment. Meanwhile, the nine-day Exponential Moving Average (EMA) sits above the 14-day EMA, further suggesting a bullish short-term momentum.
To the upside, the pair is currently testing resistance at the nine-day EMA, positioned at 1.3885. Should it surpass this level, the next target is 1.3959, a peak not seen since October 2022, reached on November 1. A breakout above 1.3959 could bolster market sentiment and pave the way for a move toward the ascending channel’s upper boundary at 1.4040.
On the downside, the immediate support level is found at the 14-day EMA around 1.3868. A drop below this level could diminish the bullish bias, with potential for a pullback toward the lower boundary of the ascending channel at 1.3820.
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