FX.co ★ USD/CAD

USD/CAD H4 Timeframe: The USD/CAD movement on the H4 timeframe shows price dynamics tending towards a consolidation phase, but with bearish pressure beginning to appear in the last few sessions. The current price is around 1.4035, moving just below the 100-day moving average (blue line) and above the 200-day moving average (red line). This position signals that the market is in a neutral zone, where sellers are beginning to demonstrate short-term dominance but have not yet completely changed the overall trend structure. Looking at the price structure since early November, USD/CAD previously strengthened significantly, touching the resistance area around 1.4139, before finally forming a peak and beginning a sharp correction. The strong rejection from this resistance area indicates that sellers still maintain control in the supply area. After the decline, the price began to move sideways with a weakening trend toward the 200-day moving average (MA), which serves as important dynamic support. The 100-day moving average (MA) that has begun to curve downwards indicates a clear shift in short-term momentum, with buyers no longer dominating as it did at the beginning of the month. Meanwhile, the 200-day moving average (MA) remains relatively stable, serving as the lower boundary to test whether this correction is merely a retracement or the beginning of a medium-term trend reversal.

Horizontal levels on the chart highlight key areas guiding price movement. The first key support area is located at 1.4006, which currently serves as a price support zone. If this support area is breached with a strong bearish candle, the price could potentially continue its decline towards 1.3945. A break below this level opens a new, more bearish structure and increases the likelihood of a move towards extreme support at 1.3886. Conversely, if the price rebounds from the 1.4006 support area and breaks through the 100-day moving average (MA), short-term bullish momentum could re-establish. The nearest resistance area is around 1.4100, which will also test whether buyers can control market direction. A breakout above this level could open the way to strong resistance at 1.4139, which has previously proven to be the upper limit of price movement. Overall, USD/CAD is in a crucial consideration phase on the 4-hour chart, where the price is between two dynamic areas that determine its direction. The current structure is more bearish as long as the price remains below the 100-day moving average (MA) and fails to break through the 1.4100 resistance level. However, as long as the 200-day moving average (MA) remains intact, the potential for an upward pullback remains open.