Big Picture and Momentum
USD/CAD is trading comfortably above the 50-day EMA (~1.3728) and above the 9-day EMA, indicating continued bullish momentum. The 14-day RSI is above the 50 level, confirming the positive market sentiment.
Key Support and Resistance
Resistance: 1.3770–1.3798 range is the current target, a break of which could open the way to the January high around 1.4016.
Support:
50-day EMA (~1.3728) is the first line of defense.
Next is the 9-day EMA (~1.3679).
A further weakening could see a decline to 1.3560, and a strong correction could see a decline to the February 2024 lows (~1.3420).
Market Behavior Scenarios
Bullish scenario: holding above EMA with RSI > 50 creates good conditions for a move up to 1.3770-1.3800, and then to 1.4016, with increasing momentum.
Bearish scenario: falling below EMA, especially below 1.3679, can lead to a deeper decline - to 1.3560 and then to 1.3420.
Recommendations for traders
Long position: can be considered for entry when holding above 1.3728, with a target of 1.3770-1.3800, and a stop just below the EMA.
Short position: justified when falling below 1.3728-1.3679, with a target of 1.3560, and a stop just above the EMA level.
USD/CAD is trading comfortably above the 50-day EMA (~1.3728) and above the 9-day EMA, indicating continued bullish momentum. The 14-day RSI is above the 50 level, confirming the positive market sentiment.
Key Support and Resistance
Resistance: 1.3770–1.3798 range is the current target, a break of which could open the way to the January high around 1.4016.
Support:
50-day EMA (~1.3728) is the first line of defense.
Next is the 9-day EMA (~1.3679).
A further weakening could see a decline to 1.3560, and a strong correction could see a decline to the February 2024 lows (~1.3420).
Market Behavior Scenarios
Bullish scenario: holding above EMA with RSI > 50 creates good conditions for a move up to 1.3770-1.3800, and then to 1.4016, with increasing momentum.
Bearish scenario: falling below EMA, especially below 1.3679, can lead to a deeper decline - to 1.3560 and then to 1.3420.
Recommendations for traders
Long position: can be considered for entry when holding above 1.3728, with a target of 1.3770-1.3800, and a stop just below the EMA.
Short position: justified when falling below 1.3728-1.3679, with a target of 1.3560, and a stop just above the EMA level.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.