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USD/CAD Price Forecast: Tests 1.4000 after breaking below 50-day EMA

  • USD/CAD tests the lower boundary of the descending channel around 1.4000.
  • The 14-day Relative Strength Index at 36 shows sellers maintain control.
  • The pair may rebound toward the nine-day EMA of 1.4075.

USD/CAD extends its losses for the second successive day. trading around 1.4010 during the Asian hours on Monday. The technical analysis of the daily chart indicates the pair is moving downward within the descending channel, suggesting an ongoing bearish bias.

The USD/CAD is holding beneath both the 50-day Exponential Moving Average (EMA) and the shorter-term nine-day EMA, which keeps the pair in a mildly bearish near-term stance after its recent pullback from the highs.

The 14-day Relative Strength Index (RSI) has cooled to about 36, suggesting fading bullish momentum but not yet oversold conditions, which hints that sellers retain control while downside extension may still unfold in a more measured fashion.

The USD/CAD pair tests the lower boundary of the descending channel around 1.4000. A break below the channel would strengthen the bearish bias and put downward pressure on the pair to navigate the region around 1.3481, the lowest since October 2024.

On the upside, the USD/CAD pair may rebound toward the nine-day EMA of 1.4075, followed by the upper boundary of the descending channel around 1.4110. Further advances would cause the bullish emergence and support the currency cross to approach 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 Euro.

USDEURGBPJPYCADAUDNZDCHF
USD-0.01%-0.12%-0.02%-0.07%-0.14%-0.16%0.01%
EUR0.01%-0.08%-0.02%-0.08%-0.12%-0.17%0.02%
GBP0.12%0.08%0.07%0.01%-0.05%-0.08%0.08%
JPY0.02%0.02%-0.07%-0.04%-0.11%-0.10%0.02%
CAD0.07%0.08%-0.01%0.04%-0.06%-0.06%0.06%
AUD0.14%0.12%0.05%0.11%0.06%-0.01%0.16%
NZD0.16%0.17%0.08%0.10%0.06%0.00%0.13%
CHF-0.01%-0.02%-0.08%-0.02%-0.06%-0.16%-0.13%

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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