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USD/CAD Price Forecast: Tests nine-day EMA barrier after breaking above 1.4200

  • USD/CAD tests immediate resistance at the nine-day EMA of 1.4236.
  • A break above the falling wedge pattern signals the potential for further upward movement.
  • A return to the falling wedge would lead the pair to test the psychological level of 1.4100.

The USD/CAD pair remains steady after registering gains for the last two successive days, trading near 1.4220 during early European hours on Thursday. Technical analysis on the daily chart indicates that the pair has broken above the falling wedge pattern, a bullish formation signaling a potential upward move.

However, the 14-day Relative Strength Index (RSI) remains below the 50 level, indicating a prevailing bearish outlook. A decisive move would be needed to confirm a clear directional trend. Additionally, the USD/CAD pair continues to trade below the nine- and 14-day Exponential Moving Averages (EMAs), reflecting persistent bearish sentiment and weak short-term price action.

The USD/CAD pair faces immediate resistance at the nine-day EMA of 1.4236, followed by the 14-day EMA of 1.4262. A decisive break above these levels could strengthen short-term momentum, potentially pushing the pair toward the psychological level of 1.4300.

On the downside, a return to the falling wedge would reinforce the bearish bias, pushing the USD/CAD pair toward the psychological level of 1.4100, followed by the lower boundary of the wedge at 1.4080. A break below this channel would further strengthen the bearish outlook, potentially driving the pair toward the three-month low of 1.3927, last reached on November 25.

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 US Dollar.

 USDEURGBPJPYCADAUDNZDCHF
USD -0.05%-0.08%-0.87%0.00%-0.24%-0.30%-0.16%
EUR0.05% -0.03%-0.83%0.06%-0.21%-0.24%-0.13%
GBP0.08%0.03% -0.78%0.08%-0.17%-0.22%-0.08%
JPY0.87%0.83%0.78% 0.87%0.62%0.52%0.69%
CAD-0.00%-0.06%-0.08%-0.87% -0.24%-0.30%-0.17%
AUD0.24%0.21%0.17%-0.62%0.24% -0.05%0.06%
NZD0.30%0.24%0.22%-0.52%0.30%0.05% 0.13%
CHF0.16%0.13%0.08%-0.69%0.17%-0.06%-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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