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USD/CAD Price Forecast: Treads water above 1.3900 as bullish bias prevails

  • USD/CAD may rebound toward the ascending channel’s upper boundary around 1.4000.
  • The 14-day Relative Strength Index holds above the 50 mark, reinforcing the prevailing bullish bias.
  • The primary support lies at the nine-day EMA of 1.3876.

USD/CAD trades around 1.3920 during the European hours on Monday, halting its five-winning streak. The technical analysis of the daily chart suggests that the pair moves upwards within an ascending channel pattern, suggesting that the bullish bias prevails.

The 14-day Relative Strength Index (RSI) remains above the 50 level, strengthening the ongoing bullish bias. Additionally, the USD/CAD pair remains above the nine-day Exponential Moving Average (EMA), suggesting the short-term price momentum is stronger.

On the upside, the USD/CAD pair may target the upper boundary of the ascending channel around 1.4000, followed by the five-month high at 1.4016, which was reached on May 13. A break above this crucial resistance zone would strengthen the bullish bias and support the pair to approach the psychological level of 1.4100.

The USD/CAD pair may find its initial support at the nine-day EMA of 1.3876, aligned with the ascending channel’s lower boundary around 1.3870. A break below the channel would weaken the bullish bias and put downward pressure on the pair to test the 50-day EMA at 1.3809.

Further declines below the 50-day EMA would dampen the medium-term price momentum and prompt the pair to navigate the region around the two-month low of 1.3721, which was recorded on August 7.

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-0.17%-0.31%-0.62%-0.13%-0.29%-0.04%-0.20%
EUR0.17%-0.15%-0.63%0.03%-0.12%0.12%-0.05%
GBP0.31%0.15%-0.38%0.18%-0.03%0.28%0.11%
JPY0.62%0.63%0.38%0.54%0.38%0.48%0.48%
CAD0.13%-0.03%-0.18%-0.54%-0.13%0.09%-0.08%
AUD0.29%0.12%0.03%-0.38%0.13%0.25%0.08%
NZD0.04%-0.12%-0.28%-0.48%-0.09%-0.25%-0.02%
CHF0.20%0.05%-0.11%-0.48%0.08%-0.08%0.02%

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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