USD/CAD Price Forecast: Stays silent below 1.3800, nine-day EMA

• USD/CAD is testing the immediate barrier at the nine-day EMA of 1.3801.
• The bullish bias is still active as the 14-day RSI is positioned slightly above the 50 level.
• The primary support appears at the 50-day EMA of 1.3782.

USD/CAD trades around 1.3800 during the European hours on Tuesday, extending its losses for the second consecutive day. The technical analysis of the daily chart suggests that the pair consolidates within an ascending channel pattern, indicating that market bias is bullish.

The USD/CAD pair has moved below the nine-day Exponential Moving Average (EMA), suggesting the short-term price momentum is weakening. However, the 14-day Relative Strength Index (RSI) is still positioned slightly above the 50 level, indicating that bullish bias is in play.

On the upside, the USD/CAD pair is testing the nine-day EMA at 1.3801. A break above this level would improve the short-term price momentum and lead the pair to 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 1.3970. Further barrier lies at the five-month high at 1.4016, reached on May 13.

The USD/CAD pair may find its initial support at the 50-day EMA of 1.3782, followed by the ascending channel's lower boundary around 1.3760 and the two-month low of 1.3721, which was recorded on August 7. Further declines would cause the emergence of the bearish bias and put downward pressure on the pair to navigate the area around the two-month low of 1.3539.

USD/CAD: Daily Chart