USD/CAD Price Forecast: Testing support at the 1.4025 area

• The US Dollar is testing support near 1.4025 against the CAD, after pulling back from six-month highs right below 1.4080.
• The Low Oil prices are keeping the Canadian Dollar from appreciating higher against a weak USD.
• The UAD/CSD broader bias remains bullish from mid-September lows near 1.3700.

The US Dollar is trimming gains against the Canadian Dollar for the second consecutive day on Thursday. The pair is retreating from six-month highs at 1.4080 and testing support at the previous top in the area of 1.4025, which, so far, is holding bulls and maintaining the bullish structure intact.

Investors' concerns that tensions between China and the US flare up are weighing on the US Dollar across the board. The Canadian Dollar, however, is failing to capitalise on the Greenback's weakness, as low Oil prices -Canada's main export- keep the Loonie's bulls in check.

Technical Analysis: Correcting lower within a bullish trend

The current US Dollar's reversal is seen as a corrective reaction following the bullish run from last week's lows around 1.3930. The 4-hour RSI is pulling back from overbought levels, and the mentioned support at the 1.4020 area is containing downside attempts for now.

A further reversal below the mentioned 1.4020 will meet the ascending trendline support at the 1.4000 area. Further down, the October 10 low is at 1.3980, while the key support is at the October 8 and 9 lows, in the area between 1.3930 and 1.3940.

Upside attempts, on the contrary, are likely to meet resistance at Wednesday's high, of 1.4060, and the October 14 high, near 1.4080. A successful break of these levels would bring the 161.8%  Fibonacci extension of the late September bull run, at 1.4145, into focus.