USD/CAD Price Forecast: Finds support near 1.4100 after pulling back from multi-year highs

• The USD/CAD rose more than 1% to 1.4178, a level not seen since April 2020.
• A corrective pullback could be triggered if the 14-day RSI breaks above the 70 mark.
• The pair may find primary supports at the nine- and 14-day EMAs.

USD/CAD extended its winning streak for the third consecutive session and rose more than 1% to 1.4178, a level not seen since April 2020. At the time of writing, the pair trades near 1.4110 during Tuesday's European session. From a technical perspective, the daily chart analysis shows the pair trending higher within an ascending channel, suggesting a strengthening bullish bias.

The 14-day Relative Strength Index (RSI) is just below the 70 level, confirming ongoing bullish momentum. However, a break above 70 would signal an overbought condition and could prompt a corrective pullback.

Additionally, the USD/CAD pair has breached above both the 14- and nine-day Exponential Moving Averages (EMA), signaling a bullish outlook and indicating strengthening short-term price momentum. This suggests strong buying interest and the potential for further price gains.

Regarding its resistance, the USD/CAD pair may attempt to re-approach its recent high of 1.4178, a level last seen in April 2020, which also aligns with the upper boundary of the ascending channel.

In terms of support, the USD/CAD pair could initially test the nine-day EMA at the 1.4000 level, followed by the 14-day EMA at 1.3984. Additional support may be found around the lower boundary of the ascending channel at 1.3960.

USD/CAD: Daily Chart