USD/CAD Price Forecast: Trades near 1.3850 after breaking above nine-day EMA
USD/CAD extends its gains for the third consecutive day, trading around 1.3840 during the Asian hours on Friday. The technical analysis of the daily chart indicates the pair is remaining within the descending channel pattern, signalling a persistent bearish bias.
The USD/CAD currency pair has continued its upward trend for three consecutive days, trading near 1.3850 after breaking above the nine-day Exponential Moving Average (EMA). Analysts suggest the pair is currently within a descending channel pattern, indicating a bearish sentiment in the short term. It remains below the 50-day EMA, which serves as a bearish short-term signal.
The 14-day Relative Strength Index (RSI) is around 46, indicating potential downside pressure but still in a moderate range. The pair might test the immediate support at the nine-day EMA at 1.3828. A break below this support level could expose the descending channel bottom at 1.3570, followed by 1.3481, the lowest point since October 2024.
Conversely, a move above the descending channel top near 1.3890, coupled with the 50-day EMA at 1.3913, could strengthen the bullish sentiment and potentially lead the pair toward the nearly 17-month high of 1.4248, reached on June 24, 2026.
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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