USD/CAD Price Forecast: Eyes 1.4100 as bulls retain control near July 29 highs
The USD/CAD pair prolongs its weekly uptrend for the third straight day, hitting a fresh high since July 29 during the early part of the European session on Wednesday. Bulls now await a move beyond the 1.4100 round figure before positioning for further gains amid a supportive fundamental backdrop.
The USD/CAD currency pair maintained its weekly uptrend during the early European session on Wednesday, reaching a new high since July 29. Traders are now watching for a move above the 1.4100 level to continue the upward momentum. Crude oil prices fell to a two-week low due to increased hopes of a diplomatic resolution to the US-Iran conflict and the reopening of the Strait of Hormuz, which weakens the commodity-linked Canadian Dollar.
The US Dollar also reached a fresh high since July 30 after the Federal Reserve's hawkish remarks, further driving the USD/CAD pair upward. A technical breakout above the 100-day Simple Moving Average (SMA) at 1.3958 triggered bullish sentiment, and the subsequent advance beyond the 61.8% Fibonacci retracement at 1.4051 supports a bullish near-term outlook.
The MACD indicator remains positive, indicating persistent upward momentum. However, the RSI at 68.4 suggests the rally may be nearing a consolidation phase rather than an immediate reversal. The next resistance level is at the 78.6% retracement near 1.4137, followed by the cycle high at 1.4246. On the downside, support is found at the 61.8% retracement at 1.4051, the 50.0% retracement at 1.3991, and the 100-day SMA at 1.3958, with additional Fibonacci support at 1.3931, 1.3857, and 1.3736. A decisive break below these support levels would invalidate the current bullish structure.
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