USD/CAD Price Forecast: Tests Seven-Month Highs Near 1.4100
The USD/CAD pair extends gains for the fourth consecutive session, trading near 1.4060 during European hours on Tuesday. The daily chart’s technical analysis shows a strong bullish trend as the pair moves upward within an ascending channel.
Technical Indicators Confirm Bullish Momentum
- The pair is above the nine-day Exponential Moving Average (EMA), indicating strong short-term momentum.
- The 14-day Relative Strength Index (RSI) is approaching 70, reinforcing the bullish outlook.
Currently, USD/CAD is testing a seven-month peak at 1.4079, close to the psychological resistance level of 1.4100. A clear break above this resistance would likely push the pair toward the upper limit of the ascending channel at 1.4210.
Key Support Levels
- Primary support is at the nine-day EMA, near 1.4013.
- This is followed by the psychological level of 1.4000.
- If the pair falls below these, the next support zones are the 50-day EMA at 1.3933 and the channel’s lower boundary around 1.3920.
Currency Performance Overview
The Canadian Dollar (CAD) was the weakest among major currencies against the Japanese Yen today. The provided heat map highlights percentage changes between major currencies, using the left column as the base currency and the top row as the quote currency.
"USD/CAD extends its gains for the fourth successive session, trading around 1.4060 during the European hours on Tuesday."
"The 14-day Relative Strength Index (RSI) is advancing toward the 70 mark, strengthening bullish bias."
"The USD/CAD pair is testing the seven-month high of 1.4079, followed by the psychological level of 1.4100."
Author's summary: The USD/CAD remains bullish, testing key resistance near 1.4100 with strong technical momentum, while support levels safeguard against immediate downside risks.