The US Dollar/Canadian Dollar (USD/CAD) currency pair continues to move within a developing correction and descending channel. At the time of this forecast, the US Dollar to Canadian Dollar exchange rate is 1.3724. Moving averages indicate a short-term bearish trend for the pair. Prices have broken below the signal lines, indicating selling pressure and potential continued decline in the pair in the near future. Currently, we should consider an attempt to develop a bearish correction in the Canadian Dollar price and a test of support near 1.3685. Subsequently, an upward rebound and continued growth of the currency pair on Forex are possible. A potential target for this movement is above 1.3865.
Canadian Dollar Forecast USD/CAD for January 2, 2026
An additional signal for a decline in the Canadian Dollar will be a break of the support line on the relative strength indicator (RSI). A second signal for a decline will be a break of the upper boundary of the descending channel. A decline and a break of the 1.3615 area would cancel out the upside for the USD/CAD currency pair on Forex. This would indicate a break of the support area and a continuation of the decline below 1.3465. Confirmation of the pair’s growth should be expected with a break of the resistance area and a close of USD/CAD above 1.3825, which would indicate a break of the upper boundary of the descending channel.
Canadian Dollar Forecast USD/CAD for January 2, 2026 suggests an attempt to test the support area near 1.3685. Further growth is expected to continue above 1.3865. A test of the support line on the relative strength indicator (RSI) will be an additional signal in favor of a rise in the Canadian dollar on Forex. A decline and a break of 1.3615 will cancel out the upward trend in USD/CAD quotes. This will indicate continued decline in the asset’s value, with a potential target below 1.3465.
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