USD/CAD Price Forecast: Bulls eye 1.3900 as RSI recovers
The USD/CAD pair bounces off daily lows at 1.3833 and is up about 0.26% on Wednesday, driven by sticky US inflation data, which triggered a jump to new weekly highs amid an ongoing short-term downturn. At the time of writing, the pair trades at 1.3873.
The USD/CAD exchange rate has shown signs of recovery, targeting the level of 1.3900 as the Relative Strength Index (RSI) recovers from bearish levels. Traders are observing this pair after it bounced off daily lows at 1.3833 and rose around 0.26% on Wednesday. The pair is currently trading at 1.3873. Following its victory over the 1.3730 August low, the USD/CAD has climbed to 1.3900.
Despite the momentum being bearish, according to the RSI, which is below its 50-neutral threshold yet rising, the pair might stabilize before plunging again. Should bullish momentum persist, the pair could breach the 1.3914 100-day Simple Moving Average (SMA) and the psychologically significant 1.3950 and 1.4000 levels. The pair's first support is the 200-day SMA at 1.3844, followed by the August 21 cycle low of 1.3730. Canadian Dollar (CAD) has demonstrated strength against the New Zealand Dollar.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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