USD/CAD Hits Three-Day High as Bearish Bias Persists

The USD/CAD exchange rate has continued its upward trend for the third consecutive day, trading around 1.3840 during the Asian hours on Friday.

According to technical analysis, the pair is still within a descending channel pattern, indicating a bearish bias.

The USD/CAD pair holds below the 50-day Exponential Moving Average (EMA), maintaining a bearish near-term bias. The price clings just above the nine-day EMA, which provides initial dynamic support.

Scotiabank strategists note that underlying market conditions remain relatively calm, but caution that these could become more volatile in the next few days as markets react to US inflation data. They add that strengthening crude and firmer commodities provide some lift to Canadian terms of trade.