USD/CAD Price Forecast: Rises to near 1.3750 after breaking above 50-day EMA

• USD/CAD may target the upper boundary of the rectangle around 1.3770.
• The market bias is bullish as the 14-day RSI is positioned above the 50 level.
• The 50-day EMA at 1.3728 acts as the immediate support.

USD/CAD extends its winning streak for the third successive session, trading around 1.3730 during the European hours on Monday. The technical analysis of the daily chart indicates that the pair moves sideways within the rectangular pattern, suggesting a prevailing neutral bias.

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

The USD/CAD pair may target the upper boundary of the rectangle around 1.3770, followed by the two-month high of 1.3798, which was recorded on June 23. A break above this level could support the pair to approach the three-month high of 1.4016, which was reached on May 13.

On the downside, the USD/CAD pair is testing the immediate support at the 50-day EMA of 1.3728, followed by the nine-day EMA at 1.3679. A break below these levels could weaken the short- and medium-term price momentum and put downward pressure on the pair to navigate the region around the rectangle's lower boundary at 1.3560, aligned with the nine-month low of 1.3539. Further declines would prompt the pair to test the 1.3419, the lowest since February 2024.

USD/CAD: Daily Chart