**USD/CAD EXTENDS RALLY TO 1.3840 BUT REMAINS TRAPPED IN BEARISH PATTERN**
The USD/CAD pair pushed higher for the third straight session during Friday’s Asian trading, climbing to 1.3840 after clearing the nine-day exponential moving average. Despite the recent upward momentum, technical indicators show the pair remains confined within a descending channel pattern that continues to signal underlying bearish pressure.
The currency pair’s ability to break above the short-term moving average suggests some near-term strength for the US dollar against the Canadian loonie. However, traders should note the broader downtrend structure remains intact, potentially capping further upside. The descending channel formation typically indicates sellers maintain control of the longer-term direction despite temporary bullish bounces.
Market participants trading this pair will be watching whether USD/CAD can sustain above the nine-day EMA or if resistance within the channel forces another reversal lower.
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FXnCO Insight
** Treat this three-day rally as a potential counter-trend bounce within a larger bearish structure rather than a trend reversal until USD/CAD breaks definitively above the descending channel resistance.
Source: FXStreet