USD/CAD could find support near the six-month low of 1.3828 recorded on Monday.
The 14-day relative strength index (RSI) shows oversold conditions, pointing to the possibility of a short-term rebound
Initial resistance is located at 1.4025 near the 9-day exponential moving average (EMA), followed by the upper boundary of the descending channel.
USD/CAD extended its fifth session of decline during Tuesday's European trading session, hovering around 1.3860. Technical analysis on the daily chart highlights a dominant bearish trend, with the pair trending downwards within a descending channel pattern.
In addition, USD/CAD remains below the 9-day exponential moving average (EMA), showing weak short-term price momentum. Meanwhile, the 14-day relative strength index (RSI) remains below 30, indicating that the bearish bias remains, but also showing oversold conditions. This opens the door for a potential short-term corrective rebound.
On the downside, USD/CAD could retest the six-month low of 1.3828 marked on Monday, which coincides with the lower boundary of the descending channel around 1.3770. A decisive break below the channel could strengthen the bearish bias and pave the way for a move towards the 1.3419 area - the lowest point since February 2024.
Initial resistance is located near the 9-day exponential moving average (EMA) at 1.4025, followed by the upper boundary of the descending channel around 1.4150. A break above the channel could turn the bias to bullish, pushing USD/CAD towards the 50-day exponential moving average (EMA) at 1.4230. Further resistance is located at the two-month high of 1.4543 set on March 4.
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✔Copy accurate trading signals✔Manage accounts🎁Stable profit of more than 210.8% per week🎁Success rate is as high as 98.55%, real-time communication: t.me/cryptoanalyst_baker
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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.