USD/CAD Price Hits Five-Day Win Streak, Tests Key Resistance

The USD/CAD pair is in a winning streak, having risen for five consecutive days. On Tuesday during Asian hours, it traded around 1.3910. The daily chart shows that the price is above the top trendline of a descending channel, indicating a potential bullish breakout.

However, until there's a decisive confirmation, a move above the top boundary carries the risk of a false breakout, where sellers push the price back down into the channel. The pair holds above the nine-day Exponential Moving Average (EMA) but remains capped by the 50-day EMA.

The USD/CAD is testing the immediate barrier at the 50-day EMA of 1.3914. A sustained break above this short-term price average would strengthen the bullish bias and allow the pair to explore the region around the nearly 17-month high of 1.4248, recorded on June 24.

The initial support lies at the nine-day EMA of 1.3861. A pullback toward the descending channel would revive the bearish bias and put downward pressure on the USD/CAD pair to test the descending channel bottom at 1.3560, followed by 1.3481, the lowest level since October 2024.