USD/CAD PRICE FORECAST: TESTS 1.3800 SUPPORT AFTER PULLING BACK FROM NINE-DAY EMA
USD/CAD PRICE FORECAST: TESTS 1.3800 SUPPORT AFTER PULLING BACK FROM NINE-DAY EMA
The USD/CAD pair is trading around 1.3810 during early European hours on Friday, indicating a retracement from its previous gains.
The daily chart reveals that the pair is attempting to break above a descending channel pattern, suggesting a potential bullish shift in market sentiment.
Immediate support is observed at the 1.3800 level, with further support at the nine-day Exponential Moving Average (EMA) near 1.3741.
Key resistance is found at the upper boundary of the descending channel, approximately at 1.3870.
A break above this level could signal a continuation of the bullish trend.
The 14-day RSI remains below 70, indicating that the pair is not yet overbought and may have room for upward movement.
Analysts maintain an overall bullish outlook for the Canadian dollar, despite recent short-term weaknesses, as it continues to trade below its 200-day moving average of approximately 1.40.
Stronger-than-expected U.S. manufacturing data from the Institute for Supply Management (ISM) reported a PMI drop to 48.7, better than the forecasted 48.0, boosting the U.S. dollar and yields.
