USD/CAD Price Forecast: Tests lower boundary of the ascending channel below 1.3600

• USD/CAD tests the lower boundary of the ascending channel, which suggests a potential weakening of the bullish bias.
• The pair's price remains above both the nine-day and 14-day EMAs, indicating that bullish momentum is still in play.
• The 1.3590 level, where "throwback support turns into pullback resistance," serves as the immediate barrier.

USD/CAD trades around 1.3590 during Wednesday's European hours. Analysis of the daily chart suggests a potential weakening of the bullish bias for the USD/CAD pair, as it is testing the lower boundary of the ascending channel pattern.

Additionally, the 14-day Relative Strength Index (RSI) is slightly below the 50 level. Further movement in the RSI will provide a clearer indication of the directional trend for the USD/CAD pair.

However, the nine-day Exponential Moving Average (EMA) is positioned slightly above the 14-day EMA, indicating that the short-term trend is stronger than the longer-term trend. The price of the USD/CAD pair remains above both the nine-day and 14-day EMAs, suggesting that bullish momentum is still in play.

On the downside, a break below the lower boundary of the ascending channel would weaken the bullish bias and lead the USD/CAD pair to test the nine-day EMA at the 1.3578 level, which aligns closely with the 14-day EMA at 1.3575. A breach below these EMAs could trigger a bearish trend, potentially pressuring the pair to move toward the six-month low of 1.3441, recorded on August 28.

Regarding the upside, the immediate barrier is at the "throwback support turns into a pullback resistance" level of 1.3590, followed by the psychological level of 1.3600. Additional resistance may emerge at the upper boundary of the ascending channel, around the 1.3700 level.

USD/CAD: Daily Chart