USD/CAD holds near 1.4400 as bullish momentum continues
USD/CAD eyes 1.4400 breakout
The USD/CAD pair extended gains for the second straight session, trading near 1.4400 during early Tuesday's Asian session. Despite testing this psychological barrier, the pair remains supported by strong technical indicators, signaling continued bullish sentiment.
As long as USD/CAD holds above the key moving averages and within the ascending channel, bullish sentiment remains intact. Traders will closely monitor whether the pair can decisively break 1.4400, which could pave the way for further upside toward 1.4518 and beyond.
USD/CAD price dynamics (Dec 2024 - Jan 2025) Source: TradingView.
Technical outlook: RSI and EMAs support uptrend
USD/CAD remains within an ascending channel on the daily chart, reflecting an ongoing uptrend. The 14-day Relative Strength Index (RSI) stands above 50, indicating positive momentum. A sustained position above this level would further affirm bullish sentiment.
Additionally, the pair trades above key short-term Exponential Moving Averages (EMAs), reinforcing buying pressure. The nine-day EMA at 1.4375 and the 14-day EMA at 1.4373 serve as immediate support levels, aligning with the lower boundary of the ascending channel near 1.4350.
Resistance and key price levels
The immediate resistance level remains the 1.4400 psychological threshold. A successful break above this could see USD/CAD retest its recent high of 1.4518, a level last reached in March 2020. If bullish momentum persists, the pair may challenge the upper boundary of the ascending channel near 1.4830.
On the downside, failure to hold above the nine-day EMA could lead to a decline toward 1.4350, where strong support is anticipated.
Previously, we discussed USD/CAD’s struggle to break above 1.4400 amid broader market uncertainty. The current price action suggests renewed bullish strength, supported by key technical indicators.
