The currency pair stabilizes as traders await a decisive move above the 200-period SMA on the 4-hour chart.
The USD/CAD pair trades near 1.4100, down 0.05% on Wednesday, after retreating from a recent rebound off the 1.4000 level. Selling pressure has stalled, with bulls eyeing a breakout above the 200-period Simple Moving Average on the 4-hour chart for further gains.
Technical indicators suggest a cautiously bullish outlook. The Relative Strength Index hovers around 60, while the MACD shows modest positive momentum. The pair’s overnight move past the 38.2% Fibonacci retracement of its June pullback also supports upward potential.
Geopolitical tensions and crude oil price movements continue to influence the pair. Hopes for US-Iran diplomacy have capped the USD’s rally, while rising oil prices provide support to the commodity-linked Canadian dollar.