USD/CAD struggles at resistance as technical indicators diverge

USD/CAD is trading at 1.3680, showing mixed technical signals as the pair faces resistance following recent recovery attempts. The currency pair has gained 0.15% in early trading but remains capped below the key 1.3700 psychological level, which has acted as strong resistance over the past week. Technical indicators present conflicting signals, with the RSI showing neutral momentum at 52 while the MACD suggests potential bearish divergence. The 50-day moving average at 1.3665 provides immediate support, while a break above 1.3700 could open the path toward 1.3750. Canadian dollar strength has been supported by steady oil prices near $78 per barrel and expectations that the Bank of Canada may pause its rate-cutting cycle. Meanwhile, USD positioning remains cautious ahead of key US economic data. Traders should monitor the 1.3650-1.3700 range for directional cues, with a sustained break either way likely determining the near-term trend.