USD/CAD Price Forecast: Remains below 1.3800 as bearish bias prevails
USD/CAD extends its losses for the third consecutive day, trading around 1.3780 during the European hours on Wednesday. The technical analysis of the daily chart indicates the pair is falling within the descending channel pattern, signalling a persistent bearish bias.
USD/CAD continues to demonstrate a bearish trend, trading near 1.3780 during Wednesday's European hours. The daily chart shows the pair within a descending channel pattern, supporting a sustained bearish sentiment. USD/CAD currently exhibits a bearish near-term bias, as the price stays below both the nine-day and 50-day Exponential Moving Averages (EMAs).
The short-term EMA is positioned beneath the longer-term one, and the current price is located under both, suggesting a limited corrective range. Moreover, the 14-day Relative Strength Index (RSI) hovers around 38, remaining in negative territory without yet indicating oversold conditions. The pair might decline towards the descending channel's lower boundary at 1.3600, subsequently reaching 1.3481, which was the lowest point since October 2024.
Conversely, the primary resistance lies at the nine-day EMA at 1.3819, followed by the descending channel top near the 50-day EMA at 1.3918. A breach above this resistance zone would bolster the bullish stance, potentially driving the pair towards the near 17-month peak of 1.4248, reached on June 24, 2026.
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