USD/CAD Price Forecast: Breaks below 1.3950 as bearish bias prevails

• USD/CAD could extend its decline, with the daily chart pointing to a sustained bearish trend.
• The 14-day RSI remains below the 50 mark, reinforcing the persistent bearish bias.
• The nine-day EMA near 1.4023 could serve as the immediate resistance level.

The USD/CAD pair slips slightly after posting gains in the previous session, trading near 1.3940 during Wednesday's Asian session. Technical analysis on the daily chart indicates a prevailing bearish trend as the pair continues to move lower within a descending channel.

Additionally, the USD/CAD pair continues to trade below the nine-day Exponential Moving Average (EMA), indicating subdued short-term momentum. At the same time, the 14-day Relative Strength Index (RSI) has climbed above the 30 level, hinting at a potential short-term corrective rebound. However, with the 14-day RSI still below the 50 threshold, the overall bearish bias remains intact.

On the downside, the USD/CAD pair could revisit the six-month low of 1.3828, recorded on Monday, aligning closely with the lower boundary of the descending channel around the 1.3750 region. A clear break below this support zone would likely strengthen the bearish outlook and open the door for a decline toward the 1.3419 area -- the lowest level since February 2024.

Initial resistance for the USD/CAD pair is located at the nine-day EMA around 1.4023, followed by the upper boundary of the descending channel near 1.4130. A breakout above this channel could signal a shift to a bullish bias, potentially pushing the pair toward the 50-day EMA at 1.4227. Beyond that, the next key resistance lies at the two-month high of 1.4543, reached on March 4.

USD/CAD: Daily Chart