USD/CAD Price Forecast: Tests confluence support zone around 1.3800, nine-day EMA

• USD/CAD may find the initial barrier at the four-month high of 1.3924.
• The market outlook is bullish as the 14-day RSI is positioned slightly above the 50 level.
• The pair is testing the 1.3800 support near the nine-day EMA of 1.3797.

USD/CAD trades around 1.3810 during the Asian hours on Friday, halting its four-day winning streak. The technical analysis of the daily chart suggests that the pair moves sideways within an ascending channel pattern, indicating that market sentiment is bullish.

The 14-day Relative Strength Index (RSI) is positioned slightly above the 50 level, indicating a bullish bias is active. Additionally, the USD/CAD pair has moved above the nine-day Exponential Moving Average (EMA), suggesting the short-term price momentum is strengthening.

On the upside, the USD/CAD pair may explore the region around the four-month high at 1.3924, which was recorded on August 22, followed by the upper boundary of the ascending channel around 1.3960. A break above this crucial resistance zone would strengthen the bullish bias and support the pair to test the five-month high at 1.4016, which was reached on May 13.

The USD/CAD pair is testing its immediate support at the psychological level of 1.3800, aligned with the nine-day EMA of 1.3797 and followed by the 50-day EMA of 1.3780. A break below these levels would weaken the short- and medium-term price momentum and prompt the pair to test the ascending channel's lower boundary around 1.3750, followed by the two-month low of 1.3721, which was recorded on August 7.

USD/CAD: Daily Chart