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USD/CAD Price Forecast: Reaches nearly monthly lows below 1.4050

  • USD/CAD falls to a near-monthly low of 1.4039, hitting the lower boundary of a symmetrical triangle.
  • The 14-day Relative Strength Index of 42 indicates faded bullish momentum.
  • The pair may rebound toward the nine-day EMA of 1.4130.

USD/CAD remains subdued after registering modest losses in the previous day, trading around 1.4050 during the European hours on Wednesday. The technical analysis of the daily chart indicates the pair is testing the lower boundary of the symmetrical triangle. A decisive close below the lower support line would signal that the sellers have taken control, suggesting a strong continuation or reversal to the downside. If buying pressure defends the lower line, the boundary holds, suggesting the price will reverse course and head back up to test the triangle's upper resistance line.

The USD/CAD is retreating from recent highs and slipping below the short-term dynamics reflected by the nine-period Exponential Moving Average (EMA), which now caps the topside. The pair still holds above the 50-period EMA. The 14-day Relative Strength Index (RSI) at 42 has eased out of overbought territory, hinting that bullish momentum has faded and leaving the near-term bias tilted to the downside while price remains under the nine-period EMA.

The USD/CAD pair recorded nearly a monthly low of 1.4039 during the early hours, near the lower boundary of the symmetrical triangle, followed by the 50-day EMA of 1.4014. A successful break below this confluence support zone would cause the bearish emergence and put downward pressure on the pair to navigate the region around the 21-month low of 1.3481, recorded on January 30.

On the upside, the USD/CAD pair may rebound toward the nine-day EMA of 1.4130. A break above the short-term moving average would cause a bullish emergence and support the pair to test the upper boundary of the symmetrical triangle around 1.4240, aligned with the 15-month high of 1.4248, reached on June 24.

Chart Analysis USD/CAD
USD/CAD: Daily Chart

(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 Swiss Franc.

USDEURGBPJPYCADAUDNZDCHF
USD-0.03%-0.00%0.02%-0.04%-0.18%-0.12%0.11%
EUR0.03%-0.03%0.06%-0.02%-0.20%-0.15%0.14%
GBP0.00%0.03%0.07%0.00%-0.17%-0.14%0.16%
JPY-0.02%-0.06%-0.07%-0.06%-0.22%-0.16%0.08%
CAD0.04%0.02%-0.00%0.06%-0.15%-0.14%0.15%
AUD0.18%0.20%0.17%0.22%0.15%0.03%0.29%
NZD0.12%0.15%0.14%0.16%0.14%-0.03%0.28%
CHF-0.11%-0.14%-0.16%-0.08%-0.15%-0.29%-0.28%

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

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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