USD/CAD trades around 1.4020 during Monday’s European session, after posting modest losses in the previous session. The pair remains in an ascending channel, reflecting a sustained bullish bias.

The 14-day RSI holds just above 50, supporting mild bullish momentum, while the pair tests resistance at the nine-day EMA of 1.4027. A break above this level could boost short-term momentum and target the seven-month high of 1.4140 from November 5. Further gains could bring the upper boundary of the ascending channel near 1.4190 into focus.

On the downside, immediate support lies at the channel’s lower boundary around the psychological 1.4000 level, followed by the 50-day EMA at 1.3965. A decisive break below this zone may trigger a bearish shift, exposing the three-month low of 1.3721 recorded on August 7.