USD/CAD edged slightly lower after modest losses in the previous session, trading around 1.4020 during European hours on Monday. The pair remains inside its ascending channel on the daily chart and continues to display a sustained bullish bias.
Technical Setup
• The 14-day Relative Strength Index (RSI) holds just above the 50 mark, supporting a mild bullish sentiment.
• Short-term momentum, however, appears soft as USD/CAD trades below its nine-day Exponential Moving Average (EMA) at 1.4027.
Key Levels to Watch
• Immediate Resistance: nine-day EMA at 1.4027.
– A decisive break above this level would improve short-term momentum and could send USD/CAD toward the fresh seven-month high of 1.4140, reached on November 5.
– Beyond that, the pair may explore the upper boundary of the ascending channel near 1.4190.
• Immediate Support: ascending channel’s lower boundary around the psychological 1.4000 level.
– Next support lies at the 50-day EMA around 1.3965.
– A break below this confluence zone would shift the bias bearish and expose the three-month low of 1.3721, recorded on August 7.
Outlook
USD/CAD remains in a clearly defined uptrend but needs to reclaim the nine-day EMA to restore positive short-term momentum. On the downside, the 1.4000–1.3965 zone is critical to keep sellers at bay. A sustained move beyond either of these levels should set the path for the next directional leg.
https://bitcoinethereumnews.com/finance/tests-nine-day-ema-barrier-near-1-4050/
