USD/CAD trades flat around 1.4065 in Friday’s early European session.
The positive bias of the pair prevails above the 100-period EMA, but the overbought RSI condition might cap its upside.
The immediate resistance level emerges at 1.4070; the first downside target to watch is 1.4000.
The USD/CAD pair holds steady near 1.4065 during the early European session on Friday. However, the renewed US Dollar (USD) demand could provide some support to the pair for the time being. Additionally, the decline in crude oil prices might weigh on the Canadian Dollar (CAD) as Canada is the largest oil exporter to the United States (US).
According to the daily chart, the constructive outlook of the USD/CAD remains intact as the pair holds above the key 100-period Exponential Moving Averages (EMA). However, the 14-day Relative Strength Index (RSI) stands above the midline near 77.65, indicating the overbought RSI condition. This suggests that further consolidation cannot be ruled out before positioning for any near-term USD/CAD appreciation.
The upper boundary of the Bollinger Band at 1.4070 acts as an immediate resistance level for the pair. A decisive break above this level could see a rally to the 1.4100 psychological level, en route to 1.4173 (the high of May 7, 2020).
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.