The currency pair falls near monthly lows, with technical indicators signaling potential further downside if support breaks.
USD/CAD extended losses, trading near 1.4050 in European hours after slipping below short-term moving averages. The pair is testing the lower boundary of a symmetrical triangle, a break below which could accelerate declines toward January’s 21-month low of 1.3481.
The 14-day RSI at 42 indicates fading bullish momentum, while the nine-period EMA now acts as resistance. The pair remains above the 50-period EMA but faces pressure near the 1.4039 low, with a break targeting the 50-day EMA at 1.4014.
Upside resistance lies at the nine-day EMA of 1.4130, but sellers retain control unless buyers defend the triangle’s lower boundary.