USD/CAD Price Forecasts: Bears are testing 1.4070 support

The US Dollar accelerated its reversal against the CAD and hit weekly lows at 1.4070.
Soft US macroeconomic data has boosted hopes of a Fed rate cut in December.
From a technical perspective, the immediate trend remains bearish while below 1.4100.

Guillermo Alcala FXStreet

The US Dollar is accelerating its reversal from last week’s highs above 1.4100 on Wednesday, with sellers testing support near 1.4070 as a raft of delayed US data releases keeps giving reasons for Federal Reserve doves to call for an easier monetary policy.

US macroeconomic figures released on Tuesday showed a weaker-than-expected consumer spending in September, while producer prices remained steady, and consumer confidence deteriorated, weighed by higher prices and worsening job prospects. The data prompted investors to ramp up bets of a Fed rate cut in December

Technical analysis: Bears remain in control while below 1.4100

The technical picture shows the pair under increasing bearish pressure after breaking support at 1.4090. The 4-hour Relative Strength Index (RSI) stands at 47 (neutral), having eased from earlier elevated readings. The Moving Average Convergence Divergence (MACD) slips below the zero line, suggesting an increasing negative pressure.

The 38.2% Fibonacci retracement of the November 18-21 rally, at 1.4069, offers nearby support, ahead of the November 20 low at the 1.4040 area, and the 61.8% support of the mentioned cycle, a common target for corrections, that lies right above 1.4030.

Upside attempts, on the contrary, are likely to be challenged at the previous support level of 1.4090, which closes the path towards the November 21 and 25 highs between 1.4125 and 1.4135.

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

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.11%	-0.09%	0.16%	-0.14%	-0.45%	-1.03%	-0.18%
EUR	0.11%		0.02%	0.27%	-0.03%	-0.34%	-0.92%	-0.07%
GBP	0.09%	-0.02%		0.25%	-0.05%	-0.35%	-0.94%	-0.09%
JPY	-0.16%	-0.27%	-0.25%		-0.30%	-0.60%	-1.19%	-0.33%
CAD	0.14%	0.03%	0.05%	0.30%		-0.32%	-0.90%	-0.04%
AUD	0.45%	0.34%	0.35%	0.60%	0.32%		-0.59%	0.27%
NZD	1.03%	0.92%	0.94%	1.19%	0.90%	0.59%		0.86%
CHF	0.18%	0.07%	0.09%	0.33%	0.04%	-0.27%	-0.86%

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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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