USD/CAD Price Forecast: Remains below 1.3600 due to persistent bearish bias

• USD/CAD may find initial support at the nine-month low of 1.3539.
• The 14-day RSI is positioned below 50, strengthening bearish bias.
• The primary resistance appears at the nine-day EMA of 1.3639.

The USD/CAD pair extends its losses after registering nearly 0.50% losses in the previous session, trading around 1.3590 during the European hours on Thursday. A bearish sentiment is prevailing as the pair moves downwards within the descending channel pattern, suggested by the technical analysis of the daily chart.

The 14-day Relative Strength Index (RSI) remains below the 50 level, strengthening bearish bias. Additionally, the USD/CAD pair remains below the nine-day Exponential Moving Average (EMA), indicating that short-term momentum is weaker.

On the downside, the USD/CAD pair may target primary support at the nine-month low of 1.3539, which was recorded on June 16. A successful break below this level could strengthen bearish bias and put downward pressure on the pair to approach the 1.3419, the lowest since February 2024, followed by the lower boundary of the descending channel around 1.3400.

The USD/CAD pair may find the primary barrier at the nine-day EMA of 1.3639. Further advances above this level would strengthen the short-term price momentum and prompt the pair to approach the descending channel's upper boundary around 1.3750, followed by the 50-day EMA at 1.3777. A break above this crucial resistance zone would improve the medium-term price momentum and support the pair to test the three-month high of 1.4016, which was reached on May 13.

USD/CAD: Daily Chart