USD/CAD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- Price remains capped below the 50-period SMA and descending trendline.

- Support at $1.41024 is key for confirming further downside.

- Momentum favors bears unless $1.42204 is reclaimed with strength.

USD/CAD is trading at $1.41636, leaning bearish after failing to break above the $1.42204 resistance level. The pair continues to struggle under a descending trendline and the 50-period SMA at $1.42646, both of which cap upside momentum.

Price recently attempted a corrective move, but selling pressure resumed near $1.42200, suggesting bears remain in control. The setup shows potential for a deeper decline, particularly if price breaks and holds below $1.41600.

On the downside, key support is seen at $1.41024—just above the April low. A break beneath this level could open the door to $1.40308 and potentially $1.39619 in extension.

The RSI at 41.16 remains below the neutral 50 mark, indicating momentum is soft and still favors sellers. If price fails to reclaim $1.42204 and stays below the 50 SMA, a bearish continuation becomes increasingly likely.

Traders will want to see a sustained move under $1.41600 to confirm the breakout, ideally on increased volume and without immediate rejection. Until then, short-term price action remains vulnerable to minor retracements.

USD/CAD - Trade Ideas

Entry Price – Sell Below 1.42204

Take Profit – 1.41024

Stop Loss – 1.43052

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$1180/ -$848

Profit & Loss Per Mini Lot = +$118/ -$84