USD/CAD Price Forecast: Moves above 1.4000, nine-day EMA due to bullish reversal potential

• USD/CAD may explore the upside around the six-month high of 1.4079.
• The 14-day Relative Strength Index remains above the 50 mark, indicating that bullish bias is active.
• The immediate support lies at the nine-day EMA of 1.4010.

USD/CAD extends its gains for the second successive session, trading around 1.4010 during the European hours on Friday. The technical analysis of the daily chart suggests a potential for a bullish reversal as the pair rebounds from the lower boundary of the ascending channel pattern.

The short-term price momentum is neutral as the USD/CAD pair is hovering around the nine-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) is still positioned above the 50 level, suggesting that the bullish bias is still stronger.

On the upside, if the USD/CAD pair successfully maintains its position above the nine-day EMA, it could strengthen the short-term price momentum and support the pair to approach the six-month high of 1.4079, reached on October 14. A break above this level would lead the pair to explore the region around the ascending channel's upper boundary at 1.4150.

The immediate support lies at the nine-day EMA of 1.4010, followed by the psychological level of 1.4000 and the ascending channel's lower boundary around 1.3980. Further declines below this confluence support zone would prompt the USD/CAD pair to test the 50-day EMA at 1.3911. A break below this level would weaken the medium-term price momentum and prompt the pair to navigate the region around the three-month low of 1.3721.

USD/CAD: Daily Chart