USD/CAD Price Forecast: Remains subdued below 1.4200 near falling wedge’s lower threshold

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  • USD/CAD may test immediate support at the lower threshold of the falling wedge at 1.4160.


  • The daily chart technical analysis shows a falling wedge pattern, signaling a potential upward correction.


  • The primary resistance appears at the nine-day EMA of 1.4278.


The USD/CAD pair continues its losing streak for the fourth successive session, trading around 1.4190 during the Asian hours on Friday. The daily chart's technical analysis shows a falling wedge pattern, which is a bullish chart pattern that signals a potential breakout to the upside.


Additionally, the 14-day Relative Strength Index (RSI) is approaching the 30 level, reinforcing the prevailing bearish outlook. However, a drop below 30 would indicate an oversold condition for the USD/CAD pair, potentially signaling an upcoming upward correction.


However, the USD/CAD pair continues to trade below the nine- and 14-day Exponential Moving Averages (EMAs), highlighting persistent bearish sentiment and weak short-term price action. This positioning still suggests sustained selling pressure.


On the downside, the USD/CAD pair could find its immediate support at the lower threshold of the falling wedge at 1.4160, followed by the psychological level of 1.4100.


The USD/CAD pair may find immediate resistance around the nine-day EMA at 1.4278, followed by the 14-day EMA at 1.4307. A breakout above these levels may strengthen short-term momentum and support the pair to test the upper boundary of the falling wedge at the 1.4330 level.


USD/CAD: Daily Chart


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