USD/CAD Price Forecast: Tests rectangle's upper boundary near 1.3800 barrier

• USD/CAD tests the upper boundary of the rectangle around 1.3780.
• The market outlook is bullish as the 14-day RSI remains above the 50 level.
• The primary support appears at the 50-day EMA of 1.3738.

USD/CAD halts its four-day winning streak, trading around 1.3770 during the Asian hours on Wednesday. The technical analysis of the daily chart suggests that the pair moves sideways within the rectangular pattern, indicating a neutral bias in play.

However, the 14-day Relative Strength Index (RSI) remains above the 50 level, indicating a bullish outlook. Additionally, the USD/CAD pair remains above the nine-day Exponential Moving Average (EMA), suggesting the short-term price momentum is stronger.

The USD/CAD pair is testing the upper boundary of the rectangle around 1.3780, followed by the two-month high of 1.3798, which was recorded on June 23. A break above this resistance zone could cause the emergence of the bullish bias and support the pair to approach the three-month high of 1.4016, which was reached on May 13.

On the downside, the USD/CAD pair could find the primary support at the 50-day EMA of 1.3738, followed by the nine-day EMA at 1.3713. A break below these levels could weaken the short- and medium-term price momentum and put downward pressure on the pair to navigate the region around the rectangle's lower boundary at 1.3560, aligned with the nine-month low of 1.3539.

USD/CAD: Daily Chart