USD/CAD continues to lose ground on the subdued US Dollar (USD), which could be attributed to the lower US Treasury yields. The USD/CAD pair inches lower to near 1.3500 during the Asian session on Tuesday.
The USD/CAD pair could find the immediate support region around the 23.6% Fibonacci retracement level at 1.3489 and the 50-day Exponential Moving Average (EMA) at 1.3476. A break below the latter could prompt the pair to approach the major level of 1.3450 before the 38.2% Fibonacci retracement level at 1.3430. Further support appears at the psychological support at the 1.3400 level.
The technical analysis of the 14-day Relative Strength Index (RSI) is positioned above 50, suggesting bullish momentum for the USD/CAD pair.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator for the USD/CAD pair, indicates a subdued momentum in the market. This interpretation is based on the MACD line's position above the centerline but lies below the signal line. Traders could await a clearer directional signal from the lagging indicator MACD before making aggressive trades in the pair.
On the upside, the USD/CAD pair could meet the key resistance at the major level of 1.3550 following February’s high at 1.3586. A break above February’s high could exert upward support to lead the pair to explore the region around the psychological resistance level at 1.3600.
Keep up with the financial markets, know what's happening and what is affecting the markets with our latest market updates. Analyze market movers, trends and build your trading strategies accordingly.