USDCAD has been in a steady uptrend after bouncing off its 2023 low of 1.3262 in late January. However, the pair experienced a pullback and has been trading sideways since the 1.3850 ceiling capped its upside trajectory.
The short-term oscillators currently suggest that the positive momentum is waning but the bears have not taken control yet. Specifically, the RSI is pointing downwards above its 50-neutral mark, while the MACD histogram has softened below its red signal line in the positive region.
If this latest downside correction resumes, the price could encounter support at the recent low of 1.3650. Diving beneath that zone, the 1.3515 hurdle, which has acted as both support and resistance multiple times in the past few months, might provide downside protection. Should that barrier fail, further declines could cease at the February support of 1.3440.
On the flipside, bullish actions may send the price to challenge 1.3810, which also held strong last November. Conquering this barricade, the bulls could then target the recent trend-rejection region of 1.3850. A break above the latter could set the stage for the 34-month high of 1.3976.
In brief, USDCAD has been rangebound in the last few daily sessions, appearing unable to extend its recent advance. Therefore, a break above the 1.3850 rejection territory is needed for the continuation of the pair’s uptrend.