The USD/CAD Analysis: What You Need to Know
- USD/CAD testing the lower boundary of the ascending channel
- Price above both nine-day and 14-day EMAs, indicating bullish momentum
- Immediate barrier at 1.3590 level
During Wednesday’s European hours, the USD/CAD pair is trading around 1.3590. Analyzing the daily chart reveals a potential weakening of the bullish bias as the pair tests the lower boundary of the ascending channel pattern.
The Technical Picture
The 14-day Relative Strength Index (RSI) is slightly below the 50 level, providing insight into the directional trend for the USD/CAD pair. The positioning of the nine-day Exponential Moving Average (EMA) above the 14-day EMA suggests a stronger short-term trend compared to the longer term. With the price above both EMAs, bullish momentum remains intact.
If the pair breaks below the ascending channel’s lower boundary, it could lead to a test of the nine-day EMA at 1.3578, closely aligned with the 14-day EMA at 1.3575. A breach below these levels might initiate a bearish trend, potentially pushing the pair towards the six-month low of 1.3441 recorded on August 28.
On the upside, immediate resistance is at the 1.3590 level, followed by 1.3600 and potentially 1.3700 at the upper boundary of the ascending channel.
Canadian Dollar Strength Today
The table below displays the percentage change of the Canadian Dollar (CAD) against major currencies today. Notably, the Canadian Dollar was strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | -0.34% | -0.45% | -0.06% | -0.32% | -0.54% | -0.40% |
The heat map illustrates percentage changes of major currencies against each other. The base currency is on the left, and the quote currency is on top. For instance, the percentage change displayed for CAD/USD shows the Canadian Dollar’s change against the US Dollar.
Analysis and Future Outlook
From a technical perspective, the USD/CAD pair is at a critical juncture as it tests the lower boundary of an ascending channel. Here are key takeaways:
- The price remains above both the nine-day and 14-day EMAs, indicating ongoing bullish momentum.
- A break below the channel’s lower boundary could signal a shift to a bearish trend.
- Immediate resistance is at the 1.3590 level, with further hurdles at 1.3600 and 1.3700.
Traders and investors should monitor the RSI and EMAs for confirmation of the pair’s direction. A breach of key levels could pave the way for significant movements in the USD/CAD exchange rate.