USD/CAD facing pressure ahead of American Trading Session – Will it reverse?
USD/CAD Technical Analysis
The USD/CAD forex pair is losing its early session gains ahead of the American Trading session. The USD/CAD pair was hovering around its level last seen in early November. The currency pair USD/CAD has been moving in ascending channel since mid-February, right after it broke above the descending trendline.
Today, the price might see a correction after yesterday’s massive gains. However, the Moving Average Convergence and Divergence (MACD) Indicator indicates that the price still has some upward momentum as the signal line is not above the histogram. Furthermore, the Relative Strength Index (RSI) value close to the overbought level also suggests some upward momentum is still left in the market.
For now, the current support level of 1.37433 is holding the currency pair USD/CAD from declining further. Any break below this level would trigger the next support at 1.35815. Below that, the 20-Day Simple Moving Average line, at 1.35302, is acting as the third support level.
On the upside, the pair will see its first resistance at 1.38153. After that, the pair will face the next resistance at the upper band of ascending channel. There are chances for a limited price drop in the coming hours. However, overall the momentum is bullish for the daily chart of the USD/CAD pair.
Daily Technical Levels
Pivot Point: 1.3704