USD/CAD Price Forecast: Hovers around 1.4150 after pulling back from multi-year highs

• USD/CAD could potentially retest 1.4195, the highest level since April 2020.
• The bullish sentiment could be strengthened if the RSI remains near the 70 level.
• The pair could find initial support at the nine-day EMA of 1.4118 level, aligned with the ascending channel’s lower boundary.

USD/CAD remains tepid for the second successive day, trading around 1.4150 during the European session on Thursday. From a technical perspective, the daily chart analysis shows the Loonie pair trends higher within an ascending channel pattern, suggesting a strengthening bullish bias.

The 14-day Relative Strength Index (RSI) has retreated from the near 70 mark, suggesting a potential downward correction. However, if the RSI maintains its position near the 70 level, it would strengthen the bullish sentiment.

Additionally, the USD/CAD pair remains above the nine- and 14-day Exponential Moving Averages (EMA), signaling a bullish outlook and indicating strengthening short-term price momentum. This suggests strong buying interest and the potential for further price gains.

On the upside, the USD/CAD pair may retest the region around its recent high of 1.4195, a level last seen in April 2020. A successful break above this level could strengthen the bullish bias and lead the pair to test the upper boundary of the ascending channel at a psychological level of 1.4300.

Regarding support, the USD/CAD pair could first test the nine-day EMA at the 1.4118 level, which aligns with the lower boundary of the ascending channel. The 14-day EMA at 1.4090 could also provide additional support. A break below this region could weaken the bullish sentiment and push the pair toward the psychological level of 1.4000.

USD/CAD: Daily Chart