The USD/CAD pair edged higher on Monday, trading around 1.4030 during European hours after posting losses in the previous session. Technical analysis indicates that the pair is attempting a bullish reversal as it rebounds within an ascending channel pattern on the daily chart.

Short-term momentum favors the US Dollar, with the pair positioned above the nine-day Exponential Moving Average (EMA). The 14-day Relative Strength Index (RSI) also remains above the 60 mark, signaling that bullish pressure could continue to build in the near term.

Upside outlook

If the pair successfully reclaims the ascending channel, the bullish bias is likely to strengthen, targeting the six-month high of 1.4079 reached on October 14. A sustained move above this level could further push USD/CAD toward the upper boundary of the ascending channel at 1.4170, opening the door for additional gains.

Support levels

Immediate support is located at the nine-day EMA near 1.4016. A breach below this level could undermine short-term momentum, potentially driving the pair down to the 50-day EMA at 1.3894. Further declines could expose the three-month low around 1.3721, highlighting the key downside risk if bullish pressure fades.

Technical summary

• Current level: 1.4030

• Immediate support: 1.4016 (9-day EMA)

• Next support: 1.3894 (50-day EMA)

• Upside target: 1.4050–1.4079 (six-month high)

• Extended target: 1.4170 (channel upper boundary)

Overall, USD/CAD is showing signs of rebounding within its ascending channel, with technical indicators supporting a bullish bias in the near term. Traders will watch whether the pair can sustain gains above key support levels to confirm the reversal and continue toward the six-month high.