Forex
USD/CAD on Brink of Breakout as Resistance Looms
The USD/CAD currency pair is approaching a potential breakout at around $1.42, according to analysts. A move above this resistance level could propel the pair back towards $1.445, an FX rate not seen since late 2024 and early 2025.
However, with the pair reaching overbought levels, it may first experience a period of consolidation or even a pullback to its 10-day exponential moving average before any further move higher.
If USD/CAD fails at $1.42 and slips below its 10-day exponential moving average, it risks falling back to its 20-day moving average at $1.40, or even returning to the lower Bollinger Band near $1.37.