USD/CAD Price Forecast: Holds ground above 1.3700 near 50-day EMA

• USD/CAD may find an initial barrier at the 50-day EMA of 1.3748.
• The market bias is bullish as the 14-day RSI is positioned above the 50 level.
• The primary support appears at the nine-day EMA of 1.3688.

The USD/CAD pair remains stronger for the fourth successive day, trading around 1.3720 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.

However, the 14-day Relative Strength Index (RSI) is positioned above the 50 level, indicating a bullish bias is active. Additionally, the USD/CAD pair remains above the nine-day Exponential Moving Average (EMA), indicating that short-term momentum is strengthening.

On the upside, the USD/CAD pair is poised to test the immediate barrier at the 50-day EMA of 1.3748, aligned with the descending channel's upper boundary around 1.3750. 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.

The USD/CAD pair may target primary support at the nine-day EMA of 1.3688. 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 declines 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 1.3340.

USD/CAD: Daily Chart