USD/CAD Price Forecast: Eyes upper rectangle boundary after breaking above 1.4000

USD/CAD may target the upper boundary of the rectangle around 1.4060.
The 14-day Relative Strength Index remains above 50, signaling an active bullish bias.
The pair may find its initial support at the psychological level of 1.4000.

Akhtar Faruqui FXStreet

USD/CAD gains ground for the third successive session, trading around 1.4020 during the European hours on Monday. The technical analysis of the daily chart indicates a price consolidation, with the pair moving sideways within a rectangle pattern.

The short-term price momentum is stronger as the pair remains above the nine-day Exponential Moving Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) is positioned above the 50 level, indicating a bullish bias is active.

On the upside, the USD/CAD pair may target the upper boundary of the rectangle around 1.4060, followed by the seven-month high of 1.4079, reached on October 14. A break above this confluence resistance zone would lead the pair to test the psychological level of 1.4100.

The primary support lies at the crucial level of 1.4000, followed by the nine-day EMA of 1.3994. Further declines below the latter would weaken the short-term price momentum and prompt the USD/CAD pair to test the rectangle’s lower boundary around 1.3930, aligned with the 50-day EMA at 1.3926.

A break below the confluence support area would cause the emergence of the bearish bias and open the doors for the USD/CAD pair to navigate the region around the “throwback support” near the four-month low of 1.3721, which was recorded on August 7.

USD/CAD: Daily Chart

Canadian Dollar Price Today

The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the weakest against the Australian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.11%	0.16%	0.11%	0.09%	-0.12%	-0.06%	0.10%
EUR	-0.11%		0.06%	-0.04%	-0.02%	-0.23%	-0.15%	0.00%
GBP	-0.16%	-0.06%		-0.06%	-0.09%	-0.27%	-0.21%	-0.04%
JPY	-0.11%	0.04%	0.06%		-0.02%	-0.20%	-0.01%	0.03%
CAD	-0.09%	0.02%	0.09%	0.02%		-0.22%	-0.12%	0.03%
AUD	0.12%	0.23%	0.27%	0.20%	0.22%		0.08%	0.26%
NZD	0.06%	0.15%	0.21%	0.01%	0.12%	-0.08%		0.17%
CHF	-0.10%	-0.01%	0.04%	-0.03%	-0.03%	-0.26%	-0.17%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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