USD/CAD Price Forecast: Remains Below 1.3800 as Bearish Bias Prevails

USD/CAD extends its losses for the third consecutive day, trading around 1.3780 during the European session on Wednesday. Technical analysis of the daily chart shows the pair moving within a descending channel, signaling a persistent bearish bias. USD/CAD remains below both the nine-day and 50-day Exponential Moving Averages (EMAs). The short-term EMA is positioned below the longer-term EMA, while price remains beneath both averages, reinforcing the bearish near-term outlook. The 14-day Relative Strength Index (RSI) is near 38. Although momentum remains negative, the RSI has not yet reached oversold territory, leaving room for further downside. On the downside, USD/CAD could initially test the descending channel bottom around 1.3640, followed by 1.3481, which represents the lowest level since October 2024. On the upside, the primary resistance level is the nine-day EMA at 1.3819. Above that, the descending channel top near the 50-day EMA at 1.3918 represents the next major barrier. A sustained break above the 1.3819–1.3918 resistance zone would weaken the bearish structure and could open the way toward 1.4248, the nearly 17-month high recorded on June 24, 2026. Key levels to watch: - Current price: 1.3780 - Immediate support: 1.3640 - Major support: 1.3481 - Resistance: 1.3819 - Major resistance: 1.3918 - Bullish breakout target: 1.4248 - RSI (14): 38 Overall, USD/CAD maintains a bearish bias while it remains below 1.3819 and the descending channel resistance. Traders will be watching the 1.3640 area closely for the next potential downside move.