• USD/CAD tests the psychological barrier at the 1.4100 level.
• The 14-day Relative Strength Index remains above 50, indicating the persistent bullish bias.
• The primary support lies at the nine-day EMA of 1.4053.

USD/CAD edges lower after two days of gains, trading around 1.4090 during the early European hours on Friday. The daily chart’s technical setup reflects a persistent bullish bias, with the pair remaining within its ascending channel pattern. The 14-day Relative Strength Index (RSI) at 59.33 stays above the 50 midline, pointing to firm but measured bullish bias.

The short-term momentum maintains an upside bias as the USD/CAD pair is positioned above the nine-day Exponential Moving Average (EMA). The nine-day average has turned higher again, keeping near-term pullbacks shallow. The nine-day EMA stands above the 50-day, reinforcing a bullish setup as long as dips remain contained.

The USD/CAD pair may test the psychological level of 1.4100, followed by the seven-month high of 1.4140, reached on November 5. Further advances above this level would lead the pair to test the upper boundary of the ascending channel at 1.4210.

On the downside, the initial support appears at the nine-day EMA of 1.4053, aligned with the ascending channel’s lower boundary around the psychological level of 1.4050. Further support lies at the 50-day EMA at 1.3978.

Further declines below the 50-day EMA would weaken the bullish 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.

(The technical analysis of this story was written with the help of an AI tool.)