Anna 
During Thursday’s European session, the USD/CAD pair witnessed a modest rebound, retracing its recent losses from the previous session to approach the 1.3480 level. The upward movement was supported by gains in the US Dollar (USD), buoyed by higher US Treasury yields attributed to recent data indicating persistent inflation in the United States (US).
Key technical levels provide insight into potential price movements. The immediate resistance lies at the nine-day Exponential Moving Average (EMA) at 1.3497, coinciding with the psychological barrier of 1.3500. A breakthrough above this level could bolster the USD/CAD pair, with further resistance seen around 1.3550 and 1.3600, aligned with March’s high of 1.3605.
Conversely, notable support awaits around the major level of 1.3450, followed by the 38.2% Fibonacci retracement level at 1.3442. A breach below these levels may exert downward pressure, potentially leading to support zones near the previous week’s low of 1.3419 and the psychological level of 1.3400.
Technical analysis provides mixed signals for the USD/CAD pair. While the 14-day Relative Strength Index (RSI) indicates bearish momentum by residing below 50, the Moving Average Convergence Divergence (MACD) suggests a potential shift. Although the MACD line is above the centerline, signaling bullish momentum, divergence below the signal line warrants cautious observation by traders for trend confirmation.
