26 Nov 2024

• The USD/CAD rose more than 1% to 1.4178, a level not seen since April 2020.
• A corrective pullback could be triggered if the 14-day RSI breaks above the 70 mark.
• The pair may find primary supports at the nine- and 14-day EMAs.
• USD/CAD has continued its upward trajectory for the third consecutive session, increasing by over 1% to reach 1.4178, a level not observed since April 2020. As of the current writing, the pair is trading around 1.4110 during the European session on Tuesday. Analyzing the daily chart from a technical standpoint reveals that the pair is moving higher within an ascending channel, indicating a robust bullish sentiment.
  
  The 14-day Relative Strength Index (RSI) is slightly below the 70 threshold, which supports the prevailing bullish momentum. Nevertheless, a rise above the 70 mark would indicate an overbought situation, potentially leading to a corrective pullback.
• The USD/CAD pair has surpassed both the 14-day and nine-day Exponential Moving Averages (EMA), indicating a positive trend and reflecting an increase in short-term price momentum. This development points to significant buying interest and the possibility of further price appreciation.
  
  In terms of resistance, the USD/CAD pair may seek to revisit its recent peak of 1.4178, a level last observed in April 2020, which coincides with the upper limit of the ascending channel.
  
  On the support side, the USD/CAD pair is likely to first test the nine-day EMA at the 1.4000 mark, followed by the 14-day EMA at 1.3984. Additional support may be located near the lower boundary of the ascending channel at 1.3960.