FX.co ★ USD/CAD

USD/CAD 1-Hour Technical Analysis USD/CAD is currently passing a significant technical turning point on the 1-hour chart. Since the price rally, it has been moving sideways near 1.4009. These crossovers are embodied in a weak inflection pattern forming a significant upper shim near the 1.4025 resistance line. The MACD indicator confirms these selling pressures, with a series of declining green bars on the histogram and the signal line beginning to flatten near the center line, suggesting that the previous strong momentum is stalling. Meanwhile, the Ichimoku Kinko Hyo cloud is forming a thick and powerful resistance line, creating dynamic overhead resistance, and the 50-day moving average is gently declining near 1.4018, acting as immediate resistance. Market sentiment indicates that the buying tax that entered during the recent small rally is facing increasing pressure. This creates an environment where additional sales could trigger continuous extended liquidation below the key support line. Looking at the Ichimoku component, the Cheonan Line remains below the Kijun Line, indicating further concern about the near-term outlook. This represents a clear weak momentum structure without an immediate reversal signal. These weak patterns have consistently shown lower highs and lower lows in the recent series of candles, with each candle showing a clear upper wick, indicating a sustained sell-off advantage with all small rally attempts. The price is currently trading below the 50-day simple moving average (SMA) and the Shimoyundai, creating a technically fragile environment where investors are more likely to sell off than rely on any rally. These psychological dynamics often lead to bear flag formations, causing sustained sell-offs below clear support levels while buyers gradually abandon positions. Current market characteristics suggest we are witnessing a true momentum shift, rather than a simple decline, in a broader context.

Key skill levels provide a clear framework for the continuation of these potential downtrends in USD/CAD. Current immediate resistance is firmly located between 1.4018 and 1.4028. In particular, an upward break above this upper limit on a strong MACD reversal signal would expose the next major obstacle near the 1.4045 area, where the 1.4045 cloud base is located. In contrast, there is solid support at the recent swing base of 1.3992, where a previous crossover occurred and where the weekly pivot converges, with a stronger acquisition expected between 1.3978 and 1.3968. A convincing downward break of this lower support, particularly on increasing volume and a weak MACD confirmation, would be a key invalidation point for any near-term recovery scenario.