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USD/CAD Price Forecast: Trades near 1.4250 after breaking below rectangular pattern

  • USD/CAD may test its immediate support at the psychological level of 1.4250.
  • The bearish bias may diminish if the pair rises back to the rectangular pattern.
  • The pair could approach the primary resistance at the nine-day EMA of 1.4316.

The USD/CAD pair continues its losing streak for the third successive session, trading around 1.4260 during the Asian hours on Thursday. The daily chart's technical analysis suggests potential for bearish bias as the pair breaks below the rectangular pattern.

The USD/CAD pair remains below the nine- and 14-day Exponential Moving Averages (EMAs), underscoring bearish sentiment and indicating weak short-term price action. This positioning reflects ongoing selling interest and suggests further downside risks.

Additionally, the 14-day Relative Strength Index (RSI) remains below the 50 mark, confirming that bearish outlook is prevailing.

On the downside, the USD/CAD pair could find its immediate support at the psychological level of 1.4250. A break below this level could lead the pair to explore the region around the psychological level of 1.4200.

The USD/CAD pair may struggle to re-enter the rectangle. If it manages to do so, the bearish bias could weaken, potentially driving the pair toward the nine-day EMA at 1.4316, followed by the 14-day EMA at 1.4336. A breakout above these levels may strengthen short-term momentum, paving the way for a test of the rectangle's upper boundary at 1.4530.

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 Euro.

 USDEURGBPJPYCADAUDNZDCHF
USD -0.39%-0.34%0.00%-0.13%-0.14%-0.17%-0.17%
EUR0.39% 0.04%0.40%0.26%0.20%0.22%0.22%
GBP0.34%-0.04% 0.33%0.21%0.19%0.17%0.17%
JPY0.00%-0.40%-0.33% -0.15%-0.15%-0.22%-0.17%
CAD0.13%-0.26%-0.21%0.15% -0.01%-0.04%-0.04%
AUD0.14%-0.20%-0.19%0.15%0.00% -0.03%-0.02%
NZD0.17%-0.22%-0.17%0.22%0.04%0.03% 0.00%
CHF0.17%-0.22%-0.17%0.17%0.04%0.02%-0.00% 

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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