USD/CAD Price Forecast: Falls toward 1.4250 after breaking below a crucial support zone

• USD/CAD may navigate near the three-month low of 1.4151. 
• A break below the ascending channel pattern suggests a shift to bearish sentiment. 
• Immediate resistance stands at the psychological level of 1.4300, followed by the 50-day EMA at 1.4323.

USD/CAD continues its losing streak for the third successive session, trading near 1.4290 during European hours on Tuesday. Technical analysis on the daily chart indicates a breakdown below an ascending channel pattern, signaling a shift toward bearish sentiment.

The 14-day Relative Strength Index (RSI) remains below 50, confirming the bearish outlook prevails. Additionally, the USD/CAD pair is trading below the nine-day Exponential Moving Average (EMA), suggesting weak short-term price momentum.

A break below the ascending channel has weakened the market sentiment and put downward pressure on the USD/CAD pair to navigate the area around the three-month low of 1.4151, last seen on February 14.

On the upside, immediate resistance is at the psychological level of 1.4300, followed by the 50-day EMA at 1.4322 and the nine-day EMA at 1.4353. A break above this resistance zone could strengthen short-term price momentum, potentially driving the USD/CAD pair toward the monthly high of 1.4543, recorded on March 4.

Further resistance is seen at the upper boundary of the ascending channel at 1.4700. A breakout above this level could reinforce the bullish bias and pave the way for a test of 1.4793, the highest level since March 2003, reached on February 3.

USD/CAD: Daily Chart