- USD/CAD trades sideways as a bullish piercing pattern emerges on the chart.
- RSI remains bearish, suggesting downside pressure still dominates the trend.
- Break above 1.3709 targets 1.3727 and 1.3742 resistance levels.
USD/CAD continues to trade laterally on Wednesday during the North American session, flattish at around 1.3658, as the pair seems capped by Monday’s price action, in which the Loonie appreciated 0.34% against the US Dollar (USD).
USD/CAD Price Forecast: Technical outlook
On Monday, the USD/CAD pair reached a daily high of 1.3709 and closed near the lows at 1.3644, extending a six-day streak of bearish sessions. Nevertheless, bulls moved in, finishing Tuesday in the green, up 0.15%, and forming a ‘bullish piercing pattern,’ which requires clearing the current week’s high of 1.3709 for further upside.
Momentum remains shifted to the downside as depicted by the Relative Strength Index (RSI). Hence, if sellers move in and clear Tuesday’s swing low of 1.3631, a move towards the 1.3600 figure is on the cards. Below, the next area of interest is the March 9 daily low at 1.3525.
On the upside, buyers must clear the 1.3700 figure, with immediate resistance seen at the 50-day Simple Moving Average (SMA) at 1.3727. Up next is the 100-day SMA at 1.3742, with the next supply area at 1.3800.
USD/CAD Price Chart – Daily
