**BREAKING: USD/CAD Slips But Technical Pattern Points to Continued Bullish Momentum**
The USD/CAD pair is trading around 1.3930 during Wednesday’s European session, marking its second consecutive day of losses. Despite this short-term weakness, technical analysis reveals the currency pair remains firmly positioned within an ascending channel pattern on the daily chart, maintaining a strong bullish bias that could drive prices toward the 1.4000 level.
This six-month high target remains within reach as the broader uptrend structure stays intact. The pullback appears technical in nature rather than a fundamental shift in direction. Traders should monitor whether the pair finds support within the channel’s lower boundary, which would typically signal a buying opportunity for continuation toward resistance near 1.4000.
The Canadian dollar’s temporary strength hasn’t broken the established pattern that has favored USD gains against the loonie in recent months.
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FXnCO Insight
** Watch for buying opportunities on dips within the ascending channel, as the technical setup continues to favor USD/CAD upside toward 1.4000 despite near-term consolidation.
Source: FXStreet