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USD/CAD moves sideways after halting a winning streak that began on December 27.
MACD indicator suggests a potential shift in the pair’s direction.
A break above the 23.6% Fibonacci retracement at 1.3351 could lead the pair to surpass the 21-day EMA at 1.3363.
USD/CAD hovers near 1.3330 during the Asian session on Wednesday. The USD/CAD pair receives upward support as investors turn back to the US Dollar (USD) on risk-off sentiment.
The technical analysis of the Moving Average Convergence Divergence (MACD) for the USD/CAD pair suggests a potential shift in the pair’s trend as the MACD line lies below the centreline but shows divergence above the signal line.
However, the lagging indicator 14-day Relative Strength Index (RSI) is positioned below 50. Traders will likely wait for confirmation implying that the USD/CAD pair could change its direction.
The USD/CAD pair could find key support near the psychological level at 1.3300 following the major support at 1.3250 level. A break below the latter could push the pair to navigate the region around the weekly low at 1.3228 followed by the psychological level at 1.3200.
The analysis suggests that on the upside, the major level at 1.3350 aligned with the 23.6% Fibonacci retracement level at 1.3351 could act as a key resistance zone. A breakthrough above the key resistance zone could lead the USD/CAD pair to surpass the 21-day Exponential Moving Average (EMA) at 1.3363 following the psychological barrier at 1.3400.
If the USD/CAD pair manages to pass through the psychological resistance, it may explore further upward movement toward the 38.2% Fibonacci retracement level at 1.3456.
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