USD/CAD Continues to Climb as Bulls Eye More Gains

Key Highlights

• USD/CAD extended its rally and climbed above 1.4120.
• A major bullish trend line is forming with support at 1.4080 on the 4-hour chart.
• Gold prices could continue to move down if there is a close below $4,050.
• Bitcoin started a fresh decline after it failed to recover above $65,500.

USD/CAD Technical Analysis

The US Dollar started a steady increase above 1.3880 against the Canadian Dollar. USD/CAD surpassed key hurdles such as 1.4000 and 1.4120.

Looking at the 4-hour chart, the pair settled well above 1.4050, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bulls even pushed the pair toward 1.4200.

The current price action suggests that the pair could continue to rise if it settles above 1.4200. The next major resistance could be 1.4265. A close above 1.4265 could open the doors for a larger increase. In the stated case, USD/CAD might aim for a test of 1.4500.

If there is a downside correction, the pair might find support near a connecting bullish trend line at 1.4170. The first major support could be near 1.4120.

The main support could be 1.4080. There is also a major bullish trend line forming with support at 1.4080. A downside break and close below the trend line might spark bearish moves. In the mentioned case, the bears could aim for a test of the 100 simple moving average (red, 4-hour) at 1.3980.

Looking at Bitcoin, the price failed to recover above $65,500, reacted to the downside, and might continue to move down.

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