USD/CAD PRICE ANALYSIS: CLIMBS TO 4-MONTH HIGHS ABOVE 1.3700

USD/CAD climbs past the 1.3700 figure on Powell’s hawkish stance,

USD/CAD Price Analysis: Buyers are eyeing 1.3800 after trading at 4-month highs.

The USD/CAD rallied to fresh YTD highs at 1.3743 on the US Federal Reserve’s (Fed) Chair Jerome Powell’s comments. Powell added that inflation is high and the Fed could tighten monetary conditions faster depending on the incoming data. Therefore, the USD/CAD jumped from around 1.3670. A the time of writing, the USD/CAD exchanges hands at 1.3744.

USD/CAD Price action

The USD/CAD has extended its gains past the 130 pips in the day, with bulls eyeing to test the November 3 high, which confluences with an upslope trendline that passes around 1.3808. If the USD/CAD pierces the latter, that wound put into play a test of 2022 high at 1.3977. But first, buyers need to reclaim 1.3900, followed by the latter and the psychological 1.4000 mark.

In an alternate scenario, the USD/CAD first support would be the 1.3700 figure for a bearish continuation, followed by the prior’s YTD high at 1.3685. Once cleared, the USD/CAD next support would be March 3, daily low at 1.3550.

It should be noted that the Relative Strength Index (RSI) in bullish territory suggests that bulls are in charge, further cemented by the Rate of Change (RoC) aiming higher.