The USD/CAD pair is extending its decline for the fourth consecutive session, trading around 1.4190 during Friday’s Asian trading hours. Technical analysis of the daily chart reveals a falling wedge pattern, a bullish formation that suggests a potential upside breakout.
Furthermore, the 14-day Relative Strength Index (RSI) is nearing the 30 level, reinforcing the bearish outlook. However, a dip below 30 would indicate oversold conditions for USD/CAD, potentially signaling an impending upward correction.
Despite this bullish potential, the USD/CAD continues to trade below the 9- and 14-day Exponential Moving Averages (EMAs), reflecting persistent bearish sentiment and weak short-term price action. This positioning suggests sustained selling pressure.
On the downside, immediate support for the USD/CAD pair lies at the lower boundary of the falling wedge around 1.4160, followed by the psychological level of 1.4100.
Looking to the upside, the pair may encounter immediate resistance near the 9-day EMA at 1.4278, followed by the 14-day EMA at 1.4307. A breakout above these levels could strengthen short-term momentum and support the pair’s advance toward the upper boundary of the falling wedge at the 1.4330 level.
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