The USDCAD pair continues to trade within a broader bearish trend, with recent price action suggesting a temporary oversold rebound. The pair is currently attempting to recover from near-term lows, yet remains capped below a key technical resistance level.
Key Resistance: 1.3800 – This level marks a prior consolidation zone and represents immediate resistance. A test and rejection here would reinforce the broader bearish structure.
Support Levels:
1.3670 – First major support, aligning with previous demand zones.
1.3635 – Secondary support, potentially acting as a pivot in extended declines.
1.3600 – Psychological and structural support; a break below would strengthen the bearish case.
Bullish Scenario: A decisive breakout above 1.3800 with a daily close would invalidate the current bearish bias and could lead to a rally toward the 1.3850 and 1.3880 resistance zones.
Technical Indicators:
Momentum is showing early signs of recovery from oversold conditions, but lacks confirmation for trend reversal.
Moving averages are tilted lower, reinforcing downside pressure unless a sustained breakout occurs.
Conclusion:
The bias for USDCAD remains bearish below the 1.3800 resistance zone. A rejection at this level could trigger renewed downside pressure toward 1.3670 and beyond. However, a confirmed breakout above 1.3800 and a daily close would shift momentum in favor of the bulls, opening the path for further upside retracement. Traders should monitor price action closely at 1.3800 for directional confirmation.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Key Resistance: 1.3800 – This level marks a prior consolidation zone and represents immediate resistance. A test and rejection here would reinforce the broader bearish structure.
Support Levels:
1.3670 – First major support, aligning with previous demand zones.
1.3635 – Secondary support, potentially acting as a pivot in extended declines.
1.3600 – Psychological and structural support; a break below would strengthen the bearish case.
Bullish Scenario: A decisive breakout above 1.3800 with a daily close would invalidate the current bearish bias and could lead to a rally toward the 1.3850 and 1.3880 resistance zones.
Technical Indicators:
Momentum is showing early signs of recovery from oversold conditions, but lacks confirmation for trend reversal.
Moving averages are tilted lower, reinforcing downside pressure unless a sustained breakout occurs.
Conclusion:
The bias for USDCAD remains bearish below the 1.3800 resistance zone. A rejection at this level could trigger renewed downside pressure toward 1.3670 and beyond. However, a confirmed breakout above 1.3800 and a daily close would shift momentum in favor of the bulls, opening the path for further upside retracement. Traders should monitor price action closely at 1.3800 for directional confirmation.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.