FX.co ★ USD/CAD

USDCAD 4-Hour Analysis: The recent support near 1.41625, which will be a confirmation signal of the short-term bearish bias and may fluctuate in the 1.40935 region, is being broken by the strong US dollar index. The current value of the USD/CAD exchange rate is 1.42335. The first day's closing pivot will break out of the consolidation level and aim for resistance at 1.42535. The neutral bottom midline trendline will then intersect at 1.43035, and price action will restrict the 100-day moving average by holding 1.42035. The price may attract more attention if it breaks out of the overbought climb and surpasses the 200-week simple moving average (SMA) before attention returns to the monthly high of 1.43285. If the bulls accelerate from this point, Bollinger Bands and oscillators will cover the midline, suggesting that a breakthrough of the 1.43835 obstacles would be the next challenge. Notably, the MACD is still positive above the red trigger line, and the rising RSI has not yet reached the overbought level of 70, all of which strongly suggest that a rally from 1.44995 may find more support. But if sellers push prices significantly below the 25- and 50-day simple moving averages at 1.40435, the bulls might be off course, and further losses might set the stage for a bearish correction below 1.39335. Investors should keep an eye out for policy data that could contradict direct support or resistance in the 1.39535–1.44235 range. On the 4-hour timeframe, the last closing candle and the formation of an upward inverted triangle pattern will cross purchasers above the 50% Fibonacci retracement level of 1.43035, offering chances for additional gains when this level is broken at 1.43535. If the purchasing pressure continues above the previously indicated levels, the pair will once again seek safety below the 40-day simple moving average of 1.41135. A break might examine the 38.3% Fibonacci level at 1.38335 and the 20-day EMA. Prior to a reversal retracement level at 1.39435, the somewhat lower 1.40535 mark will be in focus. The strength of the US dollar index will continue to follow the middle and upper base; any further increase might push 1.44535 directly before surpassing the weekly and daily pivot point of 1.47835. The current steadiness will attract buyers, and a drop below 1.39535 will push the price into the 1.37535 support level and eliminate the buyers.