USD/CAD Price Forecast: Rises above 1.4000 toward ascending channel’s upper boundary

The USD/CAD pair may approach the upper boundary of the ascending channel at the 1.4080 level.

Traders may anticipate a potential downward correction if the 14-day RSI surpasses the 70 mark.

The immediate support appears at the nine-day EMA at 1.3943 level followed by the 14-day EMA at the 1.3917 level.

The USD/CAD pair gains ground for the fifth successive day, trading around 1.4010 during the Asian session on Thursday. On the daily chart, the analysis indicates that the pair moves upwards within an ascending channel pattern, suggesting an ongoing bullish bias.

The 14-day Relative Strength Index (RSI), a widely used indicator for spotting overbought or oversold conditions, is currently just under the 70 level. This suggests ongoing bullish momentum without yet signaling an overbought state. If the 14-day RSI surpasses 70, traders may anticipate a potential downward correction. A pullback from overbought levels could push the pair back toward the 1.4000-1.3950 range.

On the upside, the USD/CAD pair could test the area near the upper boundary of the ascending channel at the 1.4080 level. A breakout above this channel could strengthen the prevailing bullish trend and propel the pair toward 1.4173, the next key resistance level reached in May 2020.