- USD/CAD is in the process of overcoming the downtrend line
- MACD and RSI hold slightly below their mid-levels
is currently consolidating just below the 1.3700 level, trading slightly above the long-term descending trend line. At the same time, it is receiving notable support from a longer-term ascending trend line that has been in place since August 2022, as well as the 20-day simple moving average (SMA) at 1.3590.
A break above the immediate resistance at 1.3790, which aligns with the 50-day SMA, could shift focus toward the psychological 1.3800 level and the next resistance at 1.3865. Continued bullish momentum may then target the 1.4020 level, with the 200-day SMA at 1.4050 acting as a potential ceiling.
On the other hand, a drop below the ascending trend line would increase the probability of a retest of the nine-month low at 1.3540. A sustained move lower could pave the way for further declines toward the 1.3420 support area.
From a technical standpoint, the MACD is trending upward above its trigger line but remains below the neutral 50 level, suggesting cautious bullish momentum. Meanwhile, the RSI is attempting to cross above the 50 threshold, indicating a potential shift in market sentiment.
To sum up, USD/CAD remains in a consolidation phase, caught between key technical levels. A decisive breakout above 1.3790 could signal a bullish continuation.