USD/CAD Pauses Near Resistance, Bullish Bias Intact
The USD/CAD pair has encountered resistance near the 1.3900 level, pausing its recent upward momentum. However, the overall bullish trend remains intact, supported by a strong US Dollar and weakening Canadian Dollar.
Key Factors:
- US Dollar Strength: The US Dollar has strengthened due to expectations of a resilient US economy and potential for further interest rate hikes.
- Canadian Dollar Weakness: The Canadian Dollar has been pressured by lower oil prices and concerns about global economic growth.
- Technical Analysis: The USD/CAD pair is currently testing a key resistance level. A break above this level could lead to further upside, while a failure to break through could result in a pullback.
Technical Outlook:
- Resistance Levels: 1.3900 and 1.3980 are key resistance levels.
- Support Levels: 1.3810 and 1.3770 are potential support levels.
- Momentum Indicators: The RSI indicates bullish momentum, but the pair is currently overbought.
Overall Outlook:
The USD/CAD pair is likely to remain volatile, influenced by US economic data, oil prices, and global market sentiment. While the overall trend remains bullish, traders should be cautious of potential short-term corrections.