USD/CAD is currently on a downward trajectory within an ascending channel, having nearly reached its recent highs. The MACD indicator has signaled a sell as it crossed its signal line. Notably, significant support is expected around the 1.3500 level, where major moving averages intersect.
The short-term trend for USD/CAD remains upward, with the currency pair ascending within a defined channel. However, a recent approach to the upper boundary of this channel has been followed by a reversal and subsequent decline.
The bearish movement is supported by the MACD indicator, which has displayed a bearish crossover, indicating a selling opportunity. This is a notable signal, particularly within a ranging or channeling market environment, as it often precedes shifts in momentum.
Despite the recent strength in the upward movement and the overall bullish sentiment, USD/CAD is currently experiencing a downturn as bearish sentiment takes hold.
Looking ahead, there is a possibility that USD/CAD will continue its descent towards a key support zone around the 1.3500 level, where the 50-day and 100-day Simple Moving Averages converge.
In summary, USD/CAD is currently undergoing a downward movement within an ascending channel, with technical indicators suggesting a potential continuation of this trend towards significant support levels.
