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USD/CAD Price Forecast: Tests upper ascending channel boundary near 1.3900

  • USD/CAD tests the upper ascending channel boundary around 1.3870.
  • The 14-day Relative Strength Index at 60.8 signals bullish conditions, reinforcing positive momentum.
  • The initial support lies at the 50-day EMA of 1.3845.

USD/CAD extends its gains for the fifth successive session, trading around 1.3870 during the European hours on Thursday. The technical analysis of the daily chart shows a potential for an upside breakout above an ascending channel pattern. The 14-day Relative Strength Index (RSI) at 60.8 (bullish) advances, reinforcing positive momentum.

The USD/CAD pair holds above the nine-day Exponential Moving Average (EMA) and the 50-day EMA, maintaining a topside bias. The short-term average rises, and the medium-term average turns slightly higher, signaling an improving trend alignment.

Maintaining closes above the 50-day EMA at 1.3845 would keep buyers in control and preserve focus on the upside. Further advances above the confluence resistance zone around the medium-term average, aligned with the upper ascending channel boundary around 1.3870, would strengthen the price momentum and support the pair to target the six-week high of 1.4014, reached on December 2.

A drop back under the nine-day EMA at 1.3788 would slow the advance and shift risk toward those supports, while holding above it would keep the path higher. Further support lies at the lower ascending channel boundary around 1.3730. A break below the channel would weaken the bullish bias and put downward pressure on the USD/CAD pair to test the five-month low of 1.3642, recorded on December 26.

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 Australian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.01%0.07%-0.14%0.15%0.33%0.31%-0.02%
EUR0.01%0.08%-0.09%0.18%0.34%0.33%-0.01%
GBP-0.07%-0.08%-0.19%0.08%0.27%0.25%-0.09%
JPY0.14%0.09%0.19%0.26%0.46%0.41%0.09%
CAD-0.15%-0.18%-0.08%-0.26%0.19%0.17%-0.17%
AUD-0.33%-0.34%-0.27%-0.46%-0.19%-0.01%-0.35%
NZD-0.31%-0.33%-0.25%-0.41%-0.17%0.01%-0.34%
CHF0.02%0.01%0.09%-0.09%0.17%0.35%0.34%

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).

(The technical analysis of this story was written with the help of an AI tool.)

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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