It holds ground above 1.3500, the next barrier appears at the nine-day EMA

• USD/CAD could test the immediate barrier at the nine-day EMA at 1.3521, followed by the 14-day EMA at 1.3546.
• The MACD momentum indicator shows a convergence below the signal line, suggesting a weakening of the bearish trend.
• The psychological level of 1.3500 appears as immediate support for the pair.

USD/CAD is moving sideways around 1.3510 during European hours on Thursday. Analysis of the daily chart indicates a bearish trend for the USD/CAD pair as the nine-day exponential moving average (EMA) is positioned below the 14-day EMA.

Additionally, the 14-day Relative Strength Index (RSI) remains near the 30 level, confirming the overall bearish trend in play, but also suggesting a potential correction soon.

The Moving Average Convergence Divergence (MACD) momentum indicator suggests a downtrend for the USD/CAD pair as the MACD line is positioned below the center line. However, the MACD line may cross over the signal line, suggesting a potential weakening of the bearish trend.

On the downside, the USD/CAD pair is testing the psychological level of 1.3500. A break below this level could strengthen the bearish trend and push the pair to navigate the region around the seven-month low at 1.3441 recorded on August 28.

In terms of resistance, the immediate barrier appears at the nine-day EMA at 1.3521, followed by the 14-day EMA at 1.3546. A break above these EMAs could weaken the bearish trend and lead the pair to test the “retracement support turns into pullback resistance” level at 1.3590, followed by the psychological level of 1.3600.

USD/CAD: Daily chart