23 Jan 2025

• USD/CAD could test 1.4485, the highest level since March 2020.
• The bullish bias persists, as the 14-day RSI stays above the 50 mark.
• Initial support for the pair is provided by the nine-day EMA at the 1.4377 level.
• The USD/CAD currency pair maintains its upward trajectory for the third consecutive session, trading near 1.4390 during the Asian trading hours on Thursday. From a technical perspective, the daily chart indicates that the pair is operating within an ascending channel, which implies a dominant bullish sentiment.
• The 14-day Relative Strength Index (RSI) is currently positioned just above the 50 threshold, signifying ongoing positive momentum. An RSI consistently above 50 is likely to bolster this optimistic outlook.
  
  Moreover, the USD/CAD currency pair is trading marginally above the nine- and 14-day Exponential Moving Averages (EMAs), which further underscores the bullish trend and indicates strong short-term price activity. This configuration suggests significant buying interest and hints at the potential for further upward movement.
  
  On the upside, the USD/CAD pair is approaching the psychological level of 1.4400, with the potential to reach 1.4485, its highest level since March 2020, achieved on January 20. Additional resistance is anticipated at the upper boundary of the ascending channel, near the critical psychological level of 1.4800.
  
  Initial support is identified around the nine-day EMA at 1.4377, followed closely by the 14-day EMA at 1.4374, which aligns with the lower boundary of the ascending channel.