• USD/CAD may find its initial support around the descending channel bottom at 1.3640.
• The 14-day Relative Strength Index is near 38, without signaling oversold conditions.
• The primary barrier lies at the nine-day EMA of 1.3819.

USD/CAD extends its losses for the third consecutive day, trading around 1.3780 during the European hours on Wednesday. The technical analysis of the daily chart indicates the pair is falling within the descending channel pattern, signalling a persistent bearish bias.

USD/CAD is holding a bearish near-term bias as spot remains under both the nine-day and 50-day Exponential Moving Averages (EMAs). The short-term EMA below the longer one and price trading beneath both hint at a capped corrective tone, while the 14-day Relative Strength Index (RSI) near 38 stays in negative territory without yet signaling oversold conditions.

The USD/CAD pair may fall toward the descending channel bottom at 1.3600, followed by 1.3481, the lowest since October 2024.

On the upside, the primary barrier lies at the nine-day EMA of 1.3819, followed by the descending channel top near the 50-day EMA of 1.3918. A break above this confluence resistance zone would strengthen the bullish bias and support the pair to explore the region around the nearly 17-month high of 1.4248, which was recorded on June 24, 2026.