USD/CAD Price Forecast: Support appears at 1.3850 with potential corrective rebounds

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • USD/CAD may find support near the six-month low of 1.3828, recorded on Monday.

  • The 14-day RSI indicates oversold conditions, pointing to the possibility of a short-term rebound.

  • Initial resistance is positioned at the nine-day EMA around 1.4025, followed by the descending channel’s upper boundary.



The USD/CAD pair extends its decline for the fifth consecutive session, hovering around 1.3860 during European trading on Tuesday. Daily chart technical analysis highlights a dominant bearish trend, with the pair trending lower within a descending channel formation.


Additionally, the USD/CAD pair remains below the nine-day Exponential Moving Average (EMA), signaling weak short-term price momentum. Meanwhile, the 14-day Relative Strength Index (RSI) stays below the 30 level, suggesting the bearish bias is in play but also indicating oversold conditions. This opens the door for potential short-term corrective rebounds.


On the downside, USD/CAD may retest the six-month low of 1.3828, marked on Monday, which coincides with the lower boundary of the descending channel near the 1.3770 level. A decisive break below this channel could reinforce the bearish bias and pave the way for a move toward the 1.3419 area — its lowest point since February 2024.


Initial resistance is seen at the nine-day EMA around 1.4025, followed by the upper boundary of the descending channel near 1.4150. A breakout above this channel could shift the bias to bullish, potentially driving the USD/CAD pair toward the 50-day EMA at 1.4230. Beyond that, further resistance is located at the two-month high of 1.4543, set on March 4.


USD/CAD: Daily Chart

Canadian Dollar PRICE Today


The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the weakest against the New Zealand Dollar.

17447089327685


The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
AUD/JPY Price Forecast: Constructive outlook remains in play above 97.50The AUD/JPY cross extends the decline to near 97.80 during the Asian trading hours on Wednesday.
Author  FXStreet
16 mins ago
The AUD/JPY cross extends the decline to near 97.80 during the Asian trading hours on Wednesday.
placeholder
EUR/USD loses momentum to near 1.1850 ahead of ECB’s Lagarde speech, Fed rate decisionThe EUR/USD pair loses momentum near 1.1855, snapping the four-day winning streak during the Asian trading hours on Wednesday.
Author  FXStreet
19 mins ago
The EUR/USD pair loses momentum near 1.1855, snapping the four-day winning streak during the Asian trading hours on Wednesday.
placeholder
GBP/USD remains below 1.3650 ahead of UK CPI dataGBP/USD loses ground after two days of gains, trading around 1.3640 during the Asian hours on Wednesday.
Author  FXStreet
2 hours ago
GBP/USD loses ground after two days of gains, trading around 1.3640 during the Asian hours on Wednesday.
placeholder
Japanese Yen softens amid modest USD bounce; focus remains on FOMC and BoJThe Japanese Yen (JPY) retreats slightly after touching its highest level since July 24 against the rebounding US Dollar (USD) during the Asian session on Wednesday, though the downside potential seems limited.
Author  FXStreet
3 hours ago
The Japanese Yen (JPY) retreats slightly after touching its highest level since July 24 against the rebounding US Dollar (USD) during the Asian session on Wednesday, though the downside potential seems limited.
placeholder
Australian Dollar edges lower as US Dollar holds ground ahead of Fed policyThe Australian Dollar (AUD) inches lower against the US Dollar (USD) on Wednesday after two days of gains.
Author  FXStreet
4 hours ago
The Australian Dollar (AUD) inches lower against the US Dollar (USD) on Wednesday after two days of gains.
Real-time Quote