USD/CAD Breaks Above Confluence, Targets 17-Month High

The USD/CAD currency pair has extended its gains for two consecutive days and is currently trading at around $1.3940 during European hours on Wednesday.

According to technical analysis, the pair has broken above a confluence around $1.3900 and is positioned above the descending channel top, indicating a bullish reversal.

The USD/CAD is consolidating in a neutral near-term bias as it holds above the short-term nine-day Exponential Moving Average (EMA) but remains capped by the 50-day EMA.

As such, the pair may test the immediate resistance at the 50-day EMA of $1.3949, and a break above this level would strengthen the bullish bias and support the pair to explore the region around the nearly 17-month high of $1.4248, recorded on June 24.