- USD/CAD strengthens to around 1.3930 in the early European session on Wednesday, gaining 0.72% for the day.
- The bullish outlook remains intact as the pair holds above the 100-day EMA and the RSI indicator remains positive.
- The first resistance level is at 1.3972, while the initial support is at 1.3836.
The USD/CAD pair strengthens to around 1.3930 in the early European session on Wednesday, as the US Dollar rises across the board, buoyed by Trump trades following polling that shows Republican candidate Donald Trump leading Democratic nominee Kamala Harris in the US presidential race.
On the daily chart, USD/CAD maintains a bullish outlook, supported above the key 100-period Exponential Moving Average (EMA). The positive momentum is further validated by the 14-day Relative Strength Index (RSI), which is above the midline at 64.45, suggesting potential for further gains in the near term.
If buying momentum continues above the upper boundary of the Bollinger Band at 1.3972, USD/CAD could rise toward the 1.4000 psychological level. A breakout above this level may attract further buying interest toward 1.4140, the weekly high from May 11.
On the downside, initial support is seen at 1.3836 (the November 5 low). A deeper pullback could test 1.3750 (October 16 low), with the 1.3700-1.3695 zone, including the round figure and the 100-day EMA, acting as key support.
USD/CAD daily chart
