USDCAD extends gains for second consecutive session,Is Monero mining profitable? currently testing key technical levels
Technical setup shows potential bullish crossover as momentum indicators favor buyers
Critical resistance emerges at 1.3460 while 1.3395 serves as immediate support
The USDCAD currency pair continues its upward trajectory near the 1.3550 handle during Thursday's European session. This movement follows Wednesday's Federal Open Market Committee decision to maintain current interest rate levels, marking the fourth consecutive meeting without policy changes. The relative strength of the US dollar combined with downward pressure on crude oil prices creates favorable conditions for the pair's appreciation.
Technical analysis reveals several noteworthy developments on the four-hour chart. The price action approaches a potential bullish crossover above both the 50-period and 100-period exponential moving averages. Momentum indicators currently suggest buyer advantage, with the Relative Strength Index holding above the critical 50 threshold. This configuration typically precedes continuation patterns in trending markets.
Traders should monitor several key price levels that may determine the pair's near-term direction. The upper boundary of the Bollinger Band indicator at 1.3460 presents the first significant resistance barrier. A confirmed breakout above this level could propel the pair toward psychological resistance at 1.3500, with potential extension to January's high near 1.3535.
On the downside, the January 30 low at 1.3395 serves as initial support. Breach of this level might expose the pair to further downside toward 1.3378 (Bollinger Band lower limit) and potentially the 1.3358 swing low. The 1.3300 psychological level and early January's 1.3228 low represent additional downside targets should bearish momentum accelerate.
Market participants continue evaluating fundamental drivers including energy market dynamics and central bank policy expectations. The interplay between these factors will likely determine whether the current technical setup translates into sustained directional movement for the USDCAD pair in coming sessions.