Key Moments
- USD/CAD trades around 1.4010 during Asian hours on Monday, extending losses for a second consecutive session.
- The pair is testing the lower boundary of a descending channel near 1.4000 while the 14-day RSI sits at 36, signaling persistent selling pressure.
- Below the channel, downside focus shifts toward 1.3481, while any rebound may initially target the nine-day EMA at 1.4075.
Technical Overview: Bearish Bias Within Descending Channel
USD/CAD continues to edge lower for a second straight day, trading close to 1.4010 during Monday’s Asian session. The daily chart shows the pair moving within a descending channel, underscoring an ongoing downside bias in the broader trend.
Price remains below both the 50-day Exponential Moving Average (EMA) and the shorter nine-day EMA. This positioning reflects a mildly bearish near-term configuration following the pair’s recent retreat from its highs.
Momentum Signals and Key Support Zone
The 14-day Relative Strength Index stands around 36, pointing to waning bullish momentum without yet signaling oversold conditions. This reading indicates that selling interest continues to dominate, with scope for further declines that may unfold in a relatively gradual manner.
USD/CAD is currently challenging the lower edge of the descending channel near 1.4000. A clear move below this boundary would reinforce the negative outlook and could open the way for a deeper slide toward the 1.3481 region, described as the lowest level since October 2024.
Upside Scenarios and Resistance Levels
If buyers reemerge, the first notable resistance on the upside is seen around the nine-day EMA at 1.4075. A recovery beyond that level would bring the upper boundary of the descending channel, near 1.4110, into view.
A stronger advance above the channel top would signal a potential bullish shift and could support a move toward the 15-month peak at 1.4248, which was reached on June 24.
Canadian Dollar Performance Against Major Currencies
On the day, the Canadian Dollar (CAD) shows varying performance against major counterparts. According to the data below, the Canadian currency is identified as the strongest versus the Euro (EUR).
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | -0.12% | -0.02% | -0.07% | -0.14% | -0.16% | 0.01% | |
| EUR | 0.01% | -0.08% | -0.02% | -0.08% | -0.12% | -0.17% | 0.02% | |
| GBP | 0.12% | 0.08% | 0.07% | 0.01% | -0.05% | -0.08% | 0.08% | |
| JPY | 0.02% | 0.02% | -0.07% | -0.04% | -0.11% | -0.10% | 0.02% | |
| CAD | 0.07% | 0.08% | -0.01% | 0.04% | -0.06% | -0.06% | 0.06% | |
| AUD | 0.14% | 0.12% | 0.05% | 0.11% | 0.06% | -0.01% | 0.16% | |
| NZD | 0.16% | 0.17% | 0.08% | 0.10% | 0.06% | 0.00% | 0.13% | |
| CHF | -0.01% | -0.02% | -0.08% | -0.02% | -0.06% | -0.16% | -0.13% |
The heat map illustrates percentage changes of major currencies relative to each other. The base currency is selected from the left-hand column, and the quote currency is taken from the top row. For example, selecting the Canadian Dollar as the base currency on the left and moving horizontally to the US Dollar column shows the percentage move for CAD (base)/USD (quote).
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
