USD/CAD Price Forecast: Forming a triangle pattern above 1.4000 support area
- USD/CAD rebound from the 1.3990 area has been capped below 1.4060 on Tuesday.
- The US Dollar remains weighed by growing uncertainty about the Fed's monetary policy stance.
- The decline in Oil prices has capped the Canadian Dollar's recovery this week.
The US Dollar (USD) stalls at the 1.4050 area against the Canadian Dollar (CAD) on Tuesday. The pair’s rebound from last week’s lows at the 1.3990 area failed to find follow-through above 1.4060, which leaves price action treading towards the peak of a descending triangle pattern.
The Greenback took a beating last week after the US Federal Reserve (Fed) left interest rates on hold and failed to convince markets about its commitment to fight inflation. Investors cut back bets on near-term Fed interest rate hikes, and the USD lost ground against its main peers in the second half of the week.
Bearish momentum faded this week as hopes of a new round of peace talks between the US and Iran sent OIl prices tumbling, and put the CAD under pressure, as Crude Oil is Canada’s main export.
Technical Analysis: Bears eye the 1.4000 support area
In the four-hour chart, USD/CAD trades at 1.4043 with upside attempts capped below a descending trendline, and bears supported at the 1.4000 area, forming a triangle pattern. Momentum indicators are mixed. The 4-hour Relative Strength Index (14) hovers around the 50 level and the Moving Average Convergence Divergence (MACD) is slightly positive, altogether hinting at a lack of clear bias.
Triangles are often continuation patterns and, in this sense, a bullish outcome is favoured. Bulls, however, will have to breach a cluster of resistances at the July 30 high, near 1.4070, the triangle top, around 1.4105, and Late July highs, at the 1.4125 area.
On the downside, initial support is at the triangle bottom, now around 1.3995, with deeper floors at the 1.3920 area (June 9 low) and the 1.3865 area (May 28 high, June 5 low)
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Canadian Dollar Price Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | -0.01% | 0.38% | -0.03% | -0.32% | 0.04% | -0.02% | |
| EUR | -0.01% | -0.04% | 0.38% | -0.05% | -0.34% | 0.00% | -0.02% | |
| GBP | 0.01% | 0.04% | 0.42% | -0.01% | -0.30% | 0.05% | 0.02% | |
| JPY | -0.38% | -0.38% | -0.42% | -0.42% | -0.69% | -0.37% | -0.28% | |
| CAD | 0.03% | 0.05% | 0.00% | 0.42% | -0.28% | 0.06% | 0.03% | |
| AUD | 0.32% | 0.34% | 0.30% | 0.69% | 0.28% | 0.35% | 0.31% | |
| NZD | -0.04% | -0.01% | -0.05% | 0.37% | -0.06% | -0.35% | -0.02% | |
| CHF | 0.02% | 0.02% | -0.02% | 0.28% | -0.03% | -0.31% | 0.02% |
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
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
