- The USD/CAD pair is testing the key psychological support at 1.3800, with the next major level at the seven-month low of 1.3760.
- The 14-day RSI stays just above 30, indicating a persistent bearish bias without entering oversold territory.
- A move above the nine-day EMA at 1.3839 could boost short-term bullish momentum.
The USD/CAD pair is holding steady around 1.3810 during the European session on Monday, following gains from the previous session. Technical analysis on the daily chart suggests a potential shift towards a bullish sentiment, with the pair remaining above the descending channel pattern.
The 14-day Relative Strength Index (RSI) is just above 30, indicating ongoing bearish pressure without entering oversold conditions. The pair also stays below the nine-day Exponential Moving Average (EMA), pointing to weak short-term momentum. More price action is needed to confirm the direction of the trend.
On the downside, the USD/CAD pair is testing the key psychological support at 1.3800, with further support at the seven-month low of 1.3760, last seen on May 2. A move back into the channel could reinforce the bearish outlook, potentially pushing the pair toward 1.3419, its lowest level since February 2024, with additional support near 1.3320.
To the upside, the USD/CAD pair faces initial resistance at the nine-day EMA at 1.3839. A break above this level could signal short-term bullish momentum, paving the way towards the 50-day EMA at 1.4066, followed by the monthly high at 1.4415. Continued upside movement may target the key resistance at 1.4793, which marks the lowest level since April 2003.
USD/CAD: Daily Chart
