Anna 
In a fluctuating Monday session, the USD/CAD currency pair struggled to maintain intraday gains, hovering around 1.3590 during the European session. The resilient U.S. dollar faced challenges in bouncing back despite robust non-farm payrolls data, sparking discussions on the Federal Reserve’s future monetary policy and the duration of sustained interest rates.
Market analysts anticipate increased momentum in the USD/CAD pair, with potential to test the formidable psychological barrier at 1.3600 and the 14-day Exponential Moving Average (EMA) of 1.3606. A breakthrough of these levels could bolster the pair towards the 38.2% Fibonacci retracement at 1.3637 and the crucial threshold of 1.3650.
Technical indicators align with the current downtrend for USD/CAD. The Moving Average Convergence Divergence (MACD) line, residing below the midline and signal lines, signals a bearish momentum for the currency pair. Additionally, the 14-day Relative Strength Index (RSI) below 50 implies a dovish sentiment in the market, hinting at potential support near major levels around 1.3550. Further support is anticipated at 1.3500, with a breach potentially inviting bears toward the previous week’s low at 1.3479. Analysts are closely monitoring these levels for insights into the future trajectory of USD/CAD amidst ongoing market dynamics.
