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USD/CAD Price Falls as Canadian Dollar Faces Headwinds from Widening Yield Gap

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CAD
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The USD/CAD price has fallen to near 1.4200 after pulling back from nearly 18-month highs.

According to technical analysis, the price is positioned slightly below the top trendline of an ascending channel, suggesting a persistent bullish bias.

However, the 14-day Relative Strength Index (RSI) hovering in overbought territory near 74 hints that upside momentum may be stretched in the short run.

The primary support lies at the nine-day EMA of 1.4157.

A break above the channel would reinforce the bullish bias and support the pair to test the psychological level of 1.4300.

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