The USD/CAD currency pair finds itself under the influence of sellers, and the four-hour chart reveals some crucial technical dynamics that are shaping its near-term outlook. As of the latest analysis, USD/CAD is wrestling to gain traction, struggling to rise above the significant resistance posed by both the 50-hour and 100-hour Exponential Moving Averages (EMAs).
One of the noteworthy features on the chart is the downward slope of these EMAs, which currently supports the sellers' stance in the short term. This suggests that the path of least resistance for USD/CAD is tilted to the downside.
The initial resistance level comes into play near the 50-hour EMA at 1.3510.
Further upwards, traders should keep an eye on the confluence of the 100-hour EMA and the upper boundary of the Bollinger Band, which is situated at 1.3530. A breakthrough above this level could open the door to higher targets, including the high from September 13 at 1.3586 and the psychological round figure of 1.3600.
On the downside, the initial support level can be found at 1.3465, corresponding to a high reached on September 20.
However, the critical battleground lies in the 1.3400-1.3410 region, marked by a psychological figure, the lower limit of the Bollinger Band, and a low recorded on August 11. This area holds significance and could act as a decisive level for USD/CAD.
In the event of further declines, the next support level comes into play at 1.3380, which corresponds to a low seen on September 19.
Additionally, the Relative Strength Index (RSI) is worth noting, as it currently stands above 50. This suggests that there is bullish momentum at play in the USD/CAD pair, despite the recent challenges faced by the currency pair.
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