Forex
USD/CAD Breakout Hinges on Clearing Key Technical Barrier
The USD/CAD pair has extended its winning streak to five sessions, trading near 1.3910 in Asian hours on Tuesday.
The pair is currently sitting above the upper boundary of a descending channel, but the lack of firm confirmation leaves room for a false move that could send price back into the channel.
Despite holding above its nine-day EMA at 1.3861, the USD/CAD remains constrained by the 50-day EMA, leaving near-term conditions broadly neutral with a mild upward tilt.
The 14-day RSI is around 54, indicating improving momentum, but the immediate hurdle for further upside is the 50-day EMA at 1.3914.