USD/CAD Price Forecast: Tests 1.3700 support near moving averages
USD/CAD continues to lose ground for the second successive session, trading around 1.3710 during the Asian hours on Monday. The near-term bias holds mildly bullish as spot advances above the nine- and 50-day Exponential Moving Average (EMA), indicating an emerging upward correction within a broader range.
Momentum supports this bid tone, with the 14-day Relative Strength Index (RSI) holding in the mid-50s after recovering from sub-40 readings, signalling improving buying pressure rather than overbought conditions.
The technical analysis of the daily chart shows the USD/CAD pair remaining close to the upper boundary of the rectangle channel pattern around 1.3750. A successful break above the channel would offer confirmation of a bullish bias and support the pair to target the three-month high of 1.3928, recorded on January 16.
On the downside, the immediate support lies at the psychological level of 1.3700, aligned with the nine- and 50-day EMAs of 1.3697 and 1.3696, respectively. Further declines below these averages would put downward pressure on the USD/CAD pair to navigate the region around the lower boundary of rectangle 1.3540.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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