The USD/CAD chart is exhibiting a strong bullish momentum that could potentially continue to push prices higher. This is supported by the fact that the price is trading above a major descending trend line, which is a bullish signal. In the event that the momentum persists, the price may break through the first resistance level and extend its bullish move.
The first support level of 1.3420 is a significant overlap support level that coincides with a 23.6% Fibonacci retracement. This level has added significance due to this convergence of factors. Additionally, the second support level at 1.3304 is a multi-swing low support level that aligns with a 61.80% Fibonacci projection.
As for resistance levels, the first resistance level of 1.3520 is a pullback resistance that is reinforced by a 78.60% Fibonacci retracement level. The second resistance level of 1.3649 is also a pullback resistance that converges with a 61.80% Fibonacci retracement level.
