USD/CAD Price Analysis: Consolidation Above 1.4300 Support Level

• The USD/CAD pair could potentially test the lower boundary of the rectangle at the 1.4280 level.
• Short-term price momentum remains subdued as the pair stays below both the nine-day and 14-day EMAs.
• A move above the EMAs could enable the pair to test the upper boundary of the rectangle at the 1.4530 level.

The USD/CAD pair remains relatively unchanged around 1.4310 during the Asian session on Friday. A look at the daily chart suggests that both buyers and sellers are undecided about the asset’s long-term trajectory, as the pair consolidates within a rectangular pattern.

The pair remains below both the nine-day and 14-day Exponential Moving Averages (EMAs), reinforcing a bearish sentiment and indicating weak short-term price action. This suggests persistent selling pressure and raises the possibility of further downside risks.

Moreover, the 14-day Relative Strength Index (RSI) remains below the 50 mark, signaling ongoing negative momentum, which strengthens the bearish outlook.

On the downside, immediate support lies at the psychological level of 1.4300, followed by the lower boundary of the rectangle at 1.4280. A break below this critical support zone could heighten bearish pressure, potentially pushing the pair towards the key psychological level of 1.4200.

Initial resistance for the USD/CAD pair is expected at the nine-day EMA, around the 1.4372 level, followed by the 14-day EMA at 1.4381. A break above these resistance levels could improve short-term price momentum and set the stage for a test of the rectangle’s upper boundary at 1.4530.

USD/CAD: Chart