The USD/CAD pair is trading near the confluence of the 9- and 14-day EMAs just below the 1.4027 level. The technical setup on the daily chart shows a stable bullish bias. The RSI (14-day Relative Strength Index) is holding slightly above 50, confirming moderate bullish sentiment. However, short-term momentum is weak, as evidenced by the pair trading below the nine-day exponential moving average (EMA).
A breakout above the confluence of the nine-day and 14-day EMAs around 1.4027 will strengthen short-term price momentum and support the USD/CAD pair. After that, prices may retest the new seven-month high near 1.4140, reached on November 5. Continued upward movement would open the door to exploring the next higher levels from April.
On the other hand, key support lies at the round 1.4000 level, followed by the November low near 1.3983 and the 50-day EMA at 1.3960. A break below this zone would trigger bearish sentiment, putting pressure on the USD/CAD pair and allowing it to move toward the October low and potentially lower.
The material has been provided by InstaForex Company - www.instaforex.com
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The USD/CAD pair is trading near the confluence of the 9- and 14-day EMAs just below the 1.4027 level. The technical setup on the daily chart shows a stable bullish bias. The RSI (14-day Relative Strength Index) is holding slightly above 50, confirming moderate bullish sentiment. However, short-term momentum is weak, as evidenced by the pair trading below the nine-day exponential moving average (EMA).
A breakout above the confluence of the nine-day and 14-day EMAs around 1.4027 will strengthen short-term price momentum and support the USD/CAD pair. After that, prices may retest the new seven-month high near 1.4140, reached on November 5. Continued upward movement would open the door to exploring the next higher levels from April.
On the other hand, key support lies at the round 1.4000 level, followed by the November low near 1.3983 and the 50-day EMA at 1.3960. A break below this zone would trigger bearish sentiment, putting pressure on the USD/CAD pair and allowing it to move toward the October low and potentially lower.
The material has been provided by InstaForex Company - www.instaforex.com