The USD/CAD pair trades near 1.4260, marking its fourth consecutive day of gains. While the pair maintains a bullish bias by holding above its nine-day and 50-day EMAs, it is currently testing the lower boundary of a rising wedge pattern that suggests potential bearish risks ahead.
Neutral
🤖 50%
The pair trades around 1.4260 after four straight stronger sessions, testing the rising wedge lower boundary near 1.4250. Bullish signals (price above the nine-day EMA at 1.4165 and 50-day EMA at 1.4081, RSI at 67.2) are offset by the wedge pattern's bearish-breakdown warning. BoC caution keeps policy convergence with the Fed a story for next year, offering no fresh near-term driver.
Catalysts
- • Test of rising wedge support around 1.4250
- • Resistance at the 19-month high of 1.4299 (October 14) and wedge upper boundary near 1.4330
Risk Factors
- • A break below the nine-day EMA (1.4165) and 50-day EMA (1.4081) would open the path toward the five-month low of 1.3732 (May 21)
- • RSI at 67.2 hints at maturing upside momentum