Usdcad Turns Positive

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Usdcad Turns Positive

Usd/Cad Turns Positive Near 1.3750

The USD/CAD pair has finally ended its 3-day losing streak and is seen trading near the 1.3730 handle on Thursday. A closer look at the D1 chart of the USD/CAD shows that the bullish trend is still weak as it has broken out of the bullish price channel.

Meanwhile, the RSI-14 on the USD/CAD chart is still above 50, which means the presence of a little bullish presence. Similarly, the momentum indicators such as the MACD also hint at a bullish trend as the MACD line is still above the centre line.

Usd/Cad Faces Next Resistance At 1.3800

Given the recent price action of the USD/CAD, the pair is likely to test the lower end of the rising channel near the 1.3760 handle. The next resistance for the USD/CAD is seen near 1.3800, while the next hurdle is seen at 1.3846.

successful break of all of these resistance levels will enable the USD/CAD to target 1.3870, where the upper limit of the rising channel is present.

Conversely, the nearest support for the USD/CAD is present at 1.3700, whereas the 21-EMA is also seen near 1.3697. So, we can say that many buying orders are also present in the 1.3700 - 1.3690 region. If this level fails to hold, the next stop on the way down will be 1.3600 and then 1.3580.

The D1 chart of the USD/CAD shows that the 20 SMA is present at 1.3679 while the 50 SMA is seen near 1.385. Similarly, the 100 and the 200 SMA are located at 1.3598 and then the 1.3580.

The positive sentiment seen in the USD/CAD is also due to the fundamentals, which now favour the greenback. The recent economic data and the Fed's comments mean there will be just 1 or even no rate cut this year.

Conversely, the BoC is likely to go ahead with at least several rate cuts this year in an effort to normalize the policy. That's why it is safe to say that the fundamental overview now favors the USD against the CAD.

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