USD/CAD Price Forecast: Surges to near 1.3700, remains above nine-day EMA

• USD/CAD may find initial support at the nine-day EMA of 1.3652.
• The market bias is neutral as the 14-day RSI hovers around the 50 level.
• The primary barrier appears at the descending channel's upper boundary around 1.3750.

The USD/CAD pair has recovered its recent losses from the previous session, trading around 1.3690 during the European hours on Wednesday. The technical analysis of the daily chart suggests a prevailing bearish sentiment as the pair consolidates within the descending channel pattern.

The 14-day Relative Strength Index (RSI) is hovering around the 50 level, indicating a neutral bias. Further movement will offer a clear directional sentiment. However, the USD/CAD pair remains above the nine-day Exponential Moving Average (EMA), indicating that short-term momentum is strengthening.

On the downside, the USD/CAD pair may target primary support at the nine-day EMA of 1.3652. A break below this level could weaken the short-term price momentum and put downward pressure on the pair to test the nine-month low of 1.3539, which was recorded on June 16.

Further decline would open the doors for the USD/CAD pair to approach the 1.3419, the lowest since February 2024, followed by the lower boundary of the descending channel around 1.3380.

The USD/CAD pair may find the primary barrier at the descending channel's upper boundary around 1.3750, aligned with the 50-day EMA at 1.3759. A break above this crucial resistance zone would improve the medium-term price momentum and support the pair to explore the region around the three-month high of 1.4016, which was reached on May 13.

USD/CAD: Daily Chart