USD/CAD Price Forecast: Hovers around the ascending channel’s upper boundary at 1.4400

• USD/CAD tests the immediate resistance at the ascending channel’s upper boundary of 1.4400 level.
• The bullish bias is reinforced as the 14-day RSI remains above the 70 mark.
• The nine-day EMA at the 1.4323 level would act as initial support for the pair.

USD/CAD breaks its three-day losing streak, trading around 1.4380 during the European session on Tuesday. From a technical standpoint, the daily chart suggests that the USD/CAD pair is testing the upper boundary of an ascending channel, indicating a strengthening bullish bias.

The 14-day Relative Strength Index (RSI) remains above the 70 level, signaling an overbought condition and the possibility of a downward correction. However, if the RSI holds near this level, it could reinforce bullish sentiment.

Moreover, the USD/CAD pair continues to trade above the nine- and 14-day Exponential Moving Averages (EMA), highlighting a bullish trend and strong short-term price momentum. This alignment reflects robust buying interest and the potential for further upside movement.

On the upside, the USD/CAD pair attempts to reclaim and break above the immediate resistance at the ascending channel’s upper boundary of the 1.4400 level. A decisive breach above this channel would reinforce the bullish bias and open the door for a potential retest of the multi-year high at 1.4467 level, which was marked on December 19.

Regarding support, the USD/CAD pair could first test the nine-day EMA at the 1.4323 level, followed by the 14-day EMA at the 1.4274 level. Further support appears at the lower boundary of the ascending channel at 1.4210 level.

USD/CAD: Daily Chart