USD/CAD Price Forecast: Tests 1.3600 barrier near nine-day EMA

💡 DMK Insight

USD/CAD’s recent gains might seem promising, but here’s the catch: it’s still trapped in a descending channel. Trading around 1.3580, the pair’s position indicates a bearish bias that traders can’t ignore. The descending channel suggests that any short-term rallies could be met with selling pressure, especially if the price approaches the upper trend line. Keep an eye on the 1.3600 level as a potential resistance point; a failure to break above could trigger further downside. Also, consider how this impacts correlated assets like crude oil, as CAD is often sensitive to oil price movements. If oil prices dip, CAD could weaken further against the USD, amplifying the bearish trend. So, while the modest gains might tempt some to take long positions, the prevailing technical setup warns against it. Watch for any signs of reversal or confirmation of the bearish trend, particularly if the pair tests the lower boundary of the channel in the coming days.