USD/CAD Price Forecast: Falls to near 1.3550 after breaking below the ascending channel
USD/CAD trades around 1.3550 during Thursday’s European hours. Analysis of the daily chart suggests a weakening of the bullish bias for the USD/CAD pair, as it has breached below the lower boundary of the ascending channel pattern.
Additionally, the 14-day Relative Strength Index (RSI) remains below the 50 level, confirming the bearish trend in play. Moreover, the nine-day Exponential Moving Average (EMA) is below the 14-day EMA, it indicates a weakening in the USD/CAD pair’s momentum.
On the downside, a break below the lower boundary of the ascending channel and the nine-day and the 14-day EMAs has triggered a bearish trend, potentially pressuring the USD/CAD pair to navigate the region around its six-month low of 1.3441, recorded on August 28.
Regarding the upside, the immediate barrier appears at the nine-day EMA at 1.3574 level, aligned with the 14-day EMA at 1.3576 level. A return to the ascending channel may reinforce the bullish bias and support the USD/CAD pair to test the "throwback support turns into a pullback resistance" level of 1.3590, followed by the psychological level of 1.3600.
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