FX.co ★ USD/CAD

Hello traders, The currency pair USDCAD - W1 chart. The wave structure is currently neutral, even though the last downward wave updated the previous low. It's not possible to call this a downtrend, not even with a stretch. It can be seen how in late December of 2025, they reached such a significant and bold uptrend line starting from 2023. In the first half of January, we saw a quite decent price increase from this line as expected. This increase was limited by the horizontal resistance level at 1.3930, which is not very visible here, but easily noticeable on the daily chart. The rise stopped at this level, which was enough to profit from the bounce off the uptrend line. After that, in the second half of December, there was a cumulative weakening of the US dollar against major world currencies. The price also decreased here, managing to break the uptrend line from which a beautiful bounce upwards was previously made. They made a price drop below the low of 2025, where there were likely many buy stop orders that the price triggered. This led to a quick buyback, which was limited, and there has been no further rise yet. I believe that this bottom sweep is a false breakout, and the price will be pulled back up again. Especially considering the bearish divergence observed on the CCI indicator. Taking into account the larger scale of the chart, this signal is very strong. It is strong also because there are similar moments on other assets. In particular, on the EURUSD pair, the opponent, and at the same time the locomotive on the weekly chart, there is a significant and beautiful bearish divergence on the MACD indicator. There, the price is likely to gradually push downwards, while here, correspondingly, it will gradually move upwards. The target for growth here can be indicated by the descending line that can be drawn from the tops of the waves. The candlestick pattern formed at the bottom indicates that the growth will most likely be fully worked out soon. We are not really going up yet, I am sure it's just a temporary delay.

Intraday on the hourly chart, the price has been moving sideways all week with swings back and forth. The last descending line was broken, and the rising wave updated the previous one. The MACD indicator has entered the upper buying zone. There is more potential for growth towards the maximum of 1.3723.