USD/CAD Price Forecast: Falls to near 1.3850 after breaking below nine-day EMA
USD/CAD extends its losses for the second consecutive day. trading around 1.3820 during the Asian hours on Thursday. The technical analysis of the daily chart indicates the pair is positioned within the descending channel pattern, signalling a bearish bias.
The USD/CAD currency pair has seen a decline for two consecutive days, trading near 1.3820 during Asian market hours on Thursday. Technical analysis suggests the pair is within a descending channel pattern, indicating a bearish outlook. The pair is currently trading below both the nine-period and 50-period Exponential Moving Averages (EMAs), suggesting immediate topside pressure and broader resistance to recovery attempts.
The 14-day RSI at 40.7 indicates persistent selling pressure, though it has not reached oversold levels. The pair may be poised near the descending channel bottom at 1.3640, with a break below potentially leading to further decline towards 1.3481, the lowest since October 2024. Conversely, an upside break above the nine-day EMA of 1.3856 and the descending channel top near the 50-day EMA of 1.3941 could bolster the bullish sentiment, potentially driving the pair towards the 17-month high of 1.4248 set on June 24, 2026.
Despite Fed Chair Williams' slightly hawkish tone, the message emphasizes a strong economy and robust outlook, suggesting the Fed could maintain data-dependent policy while tolerating tighter conditions driven by growth. The FXS Fed Sentiment Index showed a slight decrease to 127.44, indicating a modest pullback in hawkish expectations, while still maintaining a hawkish stance.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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