17 Jan 2025

• USD/CAD extends the rally to around 1.4405 in Friday’s early European session. 
• The pair resumes its upside above the 100-period EMA with the bullish RSI indicator. 
• The first resistance level to watch is 1.4410; the initial support level emerges at 1.4363.
• The USD/CAD currency pair is experiencing upward movement, approaching 1.4405 during the early hours of the European session on Friday. The overall recovery of the US Dollar (USD) is providing some support to this pair. However, increasing expectations that the US Federal Reserve (Fed) may implement two interest rate cuts this year could limit the pair's potential for further gains.
  
  From a technical perspective, USD/CAD is continuing its upward trajectory as it remains above the crucial 100-period Exponential Moving Average (EMA) on the 4-hour chart. The upward trend is further reinforced by the Relative Strength Index (RSI), which is positioned above the midpoint at approximately 61.50, indicating that additional gains are likely in the near future.
  
  The first resistance level for the pair is identified at 1.4410, which corresponds to the upper boundary of the Bollinger Band. If the price maintains trading above this level, it could lead to a rise towards 1.4447, the peak recorded on January 13. Further resistance is anticipated at the psychological level of 1.4500.
  
  Conversely, the primary support level for USD/CAD is found at 1.4363, aligning with the 100-period EMA. A decline below this level could result in a drop to 1.4322, the low observed on January 16. Additionally, the next support level to monitor is 1.4279, which corresponds to the low from January 6.