USD/CAD continues its winning streak for the seventh consecutive day, trading around 1.4120 during the European hours on Friday. The technical analysis of the daily chart indicates a prevailing bullish bias, with the pair remaining within the ascending channel pattern.

The short-term price momentum is strengthening as the pair rises above the nine-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) is positioned at the 70 level, suggesting a strong bullish bias but also signaling that the pair lies within overbought territory. This raises the possibility of a near-term downward correction.

The USD/CAD pair may test the fresh seven-month high of 1.4140, reached on November 5. A break above this level would pave the way for the pair to explore the area around the upper boundary of the ascending channel at 1.4230.

On the downside, the primary support lies at the psychological level of 1.4100, followed by the nine-day EMA at 1.4067. Further declines below this level could dampen short-term price momentum and prompt the USD/CAD pair to test the 50-day EMA at 1.3954, followed by the ascending channel’s lower boundary around 1.3940.
https://bitcoinethereumnews.com/finance/eyes-fresh-six-month-highs-near-1-4150-within-overbought-zone/