Forex
Home›Forex›Major Pairs›USD/CAD holds above support, eyes a test of the 50-day…
USD/CAD holds above support, eyes a test of the 50-day EMA
The pair is trading near 1.3940 and faces resistance at the 50-day EMA around 1.3949, with a push higher potentially targeting the 1.4248 level reached in June 2026.
USD/CAD extended gains for a second day, trading around 1.3940 during Wednesday’s European session, as it held above the short-term nine-day EMA and sits above a descending channel top, a setup cited as consistent with a bullish reversal.
FXStreet’s technical read says the pair is consolidating with a neutral near-term bias because it remains capped by the 50-day EMA, while the 14-day RSI is hovering near 51, signaling balanced momentum rather than a strong directional move.
The immediate upside focus is a test of resistance at the 50-day EMA near 1.3949, and a break above that medium-term average would strengthen the bullish case and could open the way toward the area of the nearly 17-month high at 1.4248 from June 24, 2026.
On the downside, the main support is the nine-day EMA near 1.3882, and a pullback toward the descending channel bottom around 1.3670 could revive bearish pressure, while a break below the channel would expose the 1.3481 area, the lowest since October 2024.