USD/CAD Tests Key Support at 1.3750 as Bullish Trend Remains Intact

USD/CAD Tests Confluence Support Around 1.3750, Bullish Bias Intact Despite Short-Term Weakness

USD/CAD holds within bullish structure
The USD/CAD currency pair continues its short-term pullback for a second consecutive day, trading around the 1.3760 mark in early European hours on Wednesday. Despite the current dip, the broader technical outlook remains constructive as the pair continues to trend inside an ascending channel on the daily chart — signaling a prevailing bullish bias.

Key technical levels in play
The pair is now testing a critical confluence support zone marked by the lower boundary of the ascending channel and the nine-day Exponential Moving Average (EMA) at 1.3762. A decisive hold above this zone could reinforce bullish sentiment, while a break below may trigger deeper corrections toward 1.3700 psychological support.

RSI still supports bullish outlook
The 14-day Relative Strength Index (RSI) remains above the neutral 50 level, indicating that momentum is still skewed toward the upside, despite the recent consolidation. The RSI’s position suggests that buyers retain control unless the indicator dips below the midline.

Upside targets remain valid
If USD/CAD manages to reclaim ground above the nine-day EMA, bulls may attempt a retest of the August 1st high at 1.3879. A breakout above this level could pave the way toward the upper boundary of the ascending channel at 1.3960. Sustained bullish momentum might eventually drive the pair toward the four-month high of 1.4016, last seen on May 13.

Outlook
The technical picture for USD/CAD remains bullish unless there is a sustained breakdown below the 1.3750–1.3730 region. Traders will closely monitor price action around this key support zone and look for confirmation from momentum indicators.