Anna 
The USD/CAD pair is consolidating within an ascending channel on the daily chart, with bullish sentiment recovering as indicated by the 14-day Relative Strength Index (RSI) positioned above 50. During the European session on Tuesday, the pair edged higher towards the 1.3700 level.
In addition, the Moving Average Convergence Divergence (MACD) line remains above the centerline, signaling bullish momentum, although it is still below the signal line. Traders may seek confirmation from the MACD, a lagging indicator, to confirm the trend direction.
Looking ahead, the USD/CAD pair is likely to encounter resistance near the psychological level of 1.3800. A decisive breakthrough above this level could open the path for the pair to revisit its five-month high of 1.3846, followed by further gains towards the upper boundary of the ascending channel and the psychological barrier of 1.3900.
Conversely, on the downside, the USD/CAD pair may test the lower boundary of the channel around the 1.3630 level. A breach below this level could exert downward pressure, potentially pushing the pair towards the region near the psychological support at 1.3600 and the 38.2% Fibonacci retracement level of 1.3591, calculated between the levels of 1.3178 and 1.3846.
Further downside movement could lead the USD/CAD pair towards the next significant support at 1.3478, followed by December’s low at 1.3178, should there be continued depreciation. Traders should monitor key technical levels and market developments for potential shifts in momentum and direction.
