FX.co ★ USD/CAD

USD/CAD H4 Timeframe: The USD/CAD H4 chart shows the current price hovering around 1.3980, exhibiting quite interesting dynamics after previously experiencing a correction phase from a peak around 1.4037. The price structure indicates that the main trend is still in a consolidation phase, with a weakening bullish tendency. This can be seen from the position of the 100-EMA (blue line) and 200-EMA (red line), which previously formed a positive slope, but are now starting to narrow and have the potential to cross downwards (death cross) if selling pressure continues. Historically, the price has formed a significant peak in the 1.4079–1.4099 area, but failed to break through that level and fell again, indicating strong selling pressure from market participants. Currently, the 1.3980–1.4037 zone serves as an important dynamic resistance area to watch. If the price fails to break above this area and the next candle closes below the 100-EMA, the chance of a deeper correction towards the 1.3895 support level increases. From a support perspective, the 1.3895 area is the primary key for buyers to maintain the medium-term bullish structure. If this level is successfully broken, the price has the potential to continue its decline towards 1.3809, or even the psychological level of 1.3727. However, if the price is able to stay above 1.3895 and break through the 100- and 200-EMA, buying pressure could regain dominance, with an upside target of 1.4037, followed by 1.4079 as the next strong resistance.

From a momentum perspective, the recent movement indicates a strong reaction after the sharp decline in late October, with a long bullish candle forming from the 1.3895 area, indicating significant buying interest at that level. However, to confirm a valid reversal, the price needs to consistently close above 1.3985–1.4000. Overall, USD/CAD remains in a transitional phase between correction and potential reversal. As long as the price remains below 1.4037, short-term selling pressure remains open. However, if the price is able to strengthen again above this area, the potential for a continuation of the uptrend towards 1.4079–1.4099 is possible. Traders are advised to wait for clear directional confirmation before taking a position, while monitoring the price reaction to the 100/200 EMAs and key support and resistance levels.