• USD/CAD may approach the seven-month high of 1.4140.
• The 14-day Relative Strength Index sits above 50, strengthening the bullish bias.
• The primary support lies at the nine-day EMA of 1.4036.

USD/CAD remains stable after registering modest gains in the previous session, trading around 1.4050 during the European hours on Tuesday. The daily chart’s technical setup reflects a persisting bullish bias, with the pair continuing to trade within its ascending channel.

The 14-day Relative Strength Index (RSI) remains above the 50 mark, supporting a bullish bias. However, short-term momentum turned stronger as the USD/CAD pair moved above the nine-day Exponential Moving Average (EMA).

The USD/CAD pair may explore the region around the seven-month high of 1.4140, reached on November 5. Further advances above this level would support the pair to test the upper boundary of the ascending channel at 1.4190.

On the downside, the immediate support appears at the nine-day EMA of 1.4036, followed by the ascending channel’s lower boundary around the psychological level of 1.4000. Further support lies at the 50-day EMA at 1.3969. A break below this confluence support zone would cause the emergence of the bearish bias and put downward pressure on the USD/CAD pair to navigate the region around the three-month low of 1.3721, recorded on August 7.