USD/CAD Price Forecast: Tests 1.3800; grapples to remain within the ascending channel

The USD/CAD pair tests the lower boundary of the ascending channel at 1.3790 level.
The 14-day RSI remains close to the 70 mark, indicating overbought conditions and forthcoming downward correction.
The pair could target the upper boundary around the 1.3870 level if it remains within the ascending channel.

Akhtar Faruqui FXStreet

The USD/CAD pair recovers from recent losses and trades around 1.3790 during European hours on Wednesday. On the daily chart, the analysis shows that the pair is testing the lower boundary of an ascending channel, which, if remains within the channel, supports the bullish trend.

The 14-day Relative Strength Index (RSI) is slightly below 70 level, confirming the ongoing bullish sentiment is in play. However, a move above the 70 mark would suggest overbought conditions and signal a potential downward correction.

On the upside, if USD/CAD remains within the ascending channel, it could explore the region around the upper boundary around 1.3870. A break above this level could strengthen bullish momentum, potentially driving the pair toward 1.3946, its highest point since October 2022.

In terms of the support, a decisive break below the lower boundary of the ascending channel at the 1.3790 level, could weaken bullish sentiment, pushing the USD/CAD pair to target its nine-day Exponential Moving Average (EMA) at 1.3718.

Further support is found at the former resistance, now acting as support, around 1.3620, with the key psychological level of 1.3600 just below.

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		-0.00%	0.46%	0.12%	0.08%	0.18%	0.16%	-0.06%
EUR	0.00%		0.47%	0.13%	0.10%	0.20%	0.19%	-0.10%
GBP	-0.46%	-0.47%		-0.37%	-0.35%	-0.27%	-0.27%	-0.50%
JPY	-0.12%	-0.13%	0.37%		-0.02%	0.06%	0.05%	-0.15%
CAD	-0.08%	-0.10%	0.35%	0.02%		0.09%	0.08%	-0.15%
AUD	-0.18%	-0.20%	0.27%	-0.06%	-0.09%		-0.01%	-0.24%
NZD	-0.16%	-0.19%	0.27%	-0.05%	-0.08%	0.00%		-0.23%
CHF	0.06%	0.10%	0.50%	0.15%	0.15%	0.24%	0.23%

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.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.