- USD/CAD faces a key barrier at the 1.3600 psychological level.
- MACD indicator suggests a momentum shift towards a bearish trend.
- The weekly low at 1.3569 appears as the support following the 38.2% Fibonacci retracement.
USD/CAD struggles to extend gains due to the improved Crude oil prices, trading around 1.3590 during the European session on Thursday. The pair is moving sideways ahead of inflation data from the United States (US).
The major level at 1.3600 acts as immediate resistance, aligning with the seven-day Exponential Moving Average (EMA) at 1.3608.
A decisive break above the level could contribute to support for the pair to explore the area around the psychological level at 1.3650, followed by the weekly high at 1.3672 level.
On the downside, the USD/CAD pair could find support near the weekly low at 1.3569 lined up with a 1.3550 major level, followed by the 38.2% Fibonacci retracement at 1.3520.
The Moving Average Convergence Divergence (MACD) line lies above the centerline indicating that the short-term average is above the long-term average. However, a noteworthy development is observed as the line diverges below the signal line, signaling a potential shift in momentum toward a bearish trend.
However, the USD/CAD pair maintains a prevailing bullish momentum, underscoring a stronger bias. This is evidenced by the 14-day Relative Strength Index (RSI) holding above the 50 level.
USD/CAD: Daily Chart
Source: https://www.fxstreet.com/news/usd-cad-price-analysis-moves-sideways-near-the-13600-ahead-of-us-cpi-202310120849