USD/CAD Price Forecast: Tests 50-day EMA barrier amid potential bullish breakout
USD/CAD continues its winning streak for the fifth consecutive day, trading around 1.3910 during Asian hours on Tuesday.
The USD/CAD currency pair has been on an upward trend for the past five days, reaching a trading level of approximately 1.3910 in Asian trading hours on Tuesday. Technical analysis of the daily chart suggests that the price is positioned slightly above the top trendline of a descending channel, indicating a potential bullish breakout.
However, a confirmation of this breakout is still pending, and a brief move above the top boundary could result in a false breakout, with sellers pushing the price back down into the channel. The USD/CAD pair is currently trading above the nine-day Exponential Moving Average (EMA) but remains bound by the 50-day EMA, resulting in a mildly bullish tone with a neutral overall outlook.
The 14-day Relative Strength Index (RSI) stands at around 54, indicating a recovering bullish momentum, but the proximity of the 50-day EMA overhead means that bulls still need a clear daily close above this barrier to initiate further gains. The pair is currently testing the 50-day EMA of 1.3914. If the price sustains a break above this short-term price average, it would strengthen the bullish bias and enable the pair to venture towards the vicinity of the near 17-month high of 1.4248, achieved on June 24, 2026.
Conversely, a pullback towards the nine-day EMA of 1.3861 would restore the bearish bias, putting downward pressure on the USD/CAD pair, forcing it to test the descending channel bottom at 1.3560 and subsequently 1.3481, which has been the lowest level since October 2024.
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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