|

USD/CAD Price Forecast: Remains below 1.4000, tests lower ascending channel boundary

  • USD/CAD may test its primary barrier at the psychological level of 1.4000.
  • The 14-day Relative Strength Index remains above the 50 mark, indicating that bullish bias is in play.
  • The immediate support lies at the ascending channel’s lower boundary around 1.3980.

USD/CAD moves little after two days of losses, trading around 1.3990 during the early European hours on Thursday. The technical analysis of the daily chart suggests a weakening of a prevailing bullish bias as the pair is attempting to break below the ascending channel pattern.

The short-term price momentum has turned weaker as the USD/CAD pair moved below the nine-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) is still positioned above the 50 level, suggesting that the bullish bias is still stronger.

On the upside, the initial resistance appears at the psychological level of 1.4000, followed by the nine-day EMA of 1.4009. A break above this level would improve the short-term price momentum and prompt the USD/CAD pair to approach the six-month high of 1.4079, reached on October 14. A break above this level would support the pair to explore the region around the ascending channel’s upper boundary at 1.4140.

The USD/CAD pair is testing its immediate support at the ascending channel’s lower boundary around 1.3980. A break below the channel would weaken the bullish bias and put downward pressure on the pair to test the 50-day EMA at 1.3907. Further declines would dampen the medium-term price momentum and lead the pair to navigate the region around the three-month low of 1.3721.

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 strongest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD0.12%0.05%0.30%-0.04%-0.23%-0.09%0.20%
EUR-0.12%-0.06%0.19%-0.17%-0.34%-0.21%0.08%
GBP-0.05%0.06%0.24%-0.08%-0.28%-0.15%0.15%
JPY-0.30%-0.19%-0.24%-0.34%-0.53%-0.42%-0.10%
CAD0.04%0.17%0.08%0.34%-0.18%-0.05%0.26%
AUD0.23%0.34%0.28%0.53%0.18%0.14%0.42%
NZD0.09%0.21%0.15%0.42%0.05%-0.14%0.30%
CHF-0.20%-0.08%-0.15%0.10%-0.26%-0.42%-0.30%

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.

More from Akhtar Faruqui
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD posts modest gains above 1.1650 amid weaker US Dollar

EUR/USD posts modest gains above 1.1650 in the European session on Monday. The prospect of a US Federal Reserve rate cut at its December meeting on Wednesday keeps the US Dollar undermined across the board, supporting the pair amid strong German Industrial Production data. Eurozone Sentix Investor Confidence data is next in focus. 

GBP/USD consolidates above 1.3300 as traders await Fed rate decision

GBP/USD kicks off the new week on a subdued note and oscillates in a narrow trading band above 1.3300 in European trading on Monday. The pair, however, remains close to the highest level since October 22, with bulls awaiting a sustained strength on a potential dovish Fed verdict due later this Wednesday. 

Gold edges higher amid dovish Fed bets and geopolitical risks; lacks bullish conviction

Gold attracts some dip-buying at the start of a new week and stalls Friday's modest pullback from the $4,260 area, or the vicinity of its highest level since October 21. The US Dollar continues with its struggle to attract any meaningful buyers and languishes near a one-month low amid dovish Federal Reserve expectations. 

Bitcoin and Ethereum aim for breakouts as Ripple holds at $2

Bitcoin, Ethereum, and Ripple record a minor recovery on Monday, starting the week on a positive note. The retail demand for major cryptocurrencies remains strong despite outflows from Bitcoin and Ethereum Exchange Traded Funds.

The Silver disconnection is real

Silver just hit a new all-time high. Neither did gold, nor mining stocks. They all reversed on an intraday basis, but silver’s move to new highs makes it still bullish overall, while the almost complete reversals in gold and miners make the latter technically bearish.

Top 3 Price Predictions: Bitcoin and Ethereum aim for breakouts as Ripple holds at $2

Bitcoin, Ethereum, and Ripple record a minor recovery on Monday, starting the week on a positive note. The retail demand for major cryptocurrencies remains strong despite outflows from Bitcoin and Ethereum Exchange Traded Funds (ETFs).