USD/CAD Price Forecast: Hovers around 1.4050 within overbought territory
- USD/CAD may target the six-month high of 1.4079.
- The 14-day Relative Strength Index hovers around 70, signaling overbought conditions.
- The primary support lies at the nine-day EMA of 1.4019.
USD/CAD inches lower after registering gains in the previous session, trading around 1.4050 during the early European hours on Friday. The technical analysis of the daily chart suggests a persistent bullish bias as the pair is moving upwards within the ascending channel pattern.
The short-term price momentum is stronger as the USD/CAD pair remains above the nine-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) is positioned at the 70 level, suggesting the USD/CAD pair is trading within an overbought territory and a potential for a downward correction in the near future.
On the upside, the initial barrier lies at the six-month high of 1.4079, reached on October 14. A break above this level would support the pair to test the psychological level of 1.4100, followed by the ascending channel’s upper boundary around 1.4160.
The USD/CAD pair may find its initial support at the nine-day EMA of 1.4019, aligned with the lower boundary of the ascending channel. A break below this confluence support zone would weaken the short-term price momentum and put downward pressure on the pair to navigate the region around the 50-day EMA at 1.3890.
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 Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.19% | -0.14% | -0.51% | 0.00% | 0.22% | -0.14% | -0.54% | |
| EUR | 0.19% | 0.06% | -0.33% | 0.21% | 0.47% | 0.04% | -0.36% | |
| GBP | 0.14% | -0.06% | -0.34% | 0.11% | 0.39% | -0.02% | -0.48% | |
| JPY | 0.51% | 0.33% | 0.34% | 0.50% | 0.77% | 0.34% | -0.06% | |
| CAD | -0.00% | -0.21% | -0.11% | -0.50% | 0.23% | -0.16% | -0.60% | |
| AUD | -0.22% | -0.47% | -0.39% | -0.77% | -0.23% | -0.41% | -0.81% | |
| NZD | 0.14% | -0.04% | 0.02% | -0.34% | 0.16% | 0.41% | -0.46% | |
| CHF | 0.54% | 0.36% | 0.48% | 0.06% | 0.60% | 0.81% | 0.46% |
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.
