FX.co ★ USD/CAD

The USDCAD pair is currently trading in a very important resistance area, and the four-hour chart continues to show mixed pressure between buyers and sellers. The resistance around 1.3750–1.3765 remains very strong, and several candlestick formations are confirming that sellers are actively defending this zone. On the H4 timeframe, Friday’s pin bar near the descending trendline clearly showed weak buying momentum at higher prices. In addition, the bearish engulfing candle formed inside the weekly margin control zone around 1.3717–1.3734 increased the possibility of a corrective decline before any new bullish continuation. Even though USDCAD managed to break the previous local high at 1.3710 and briefly traded above 1.3750, the market still failed to produce a strong consolidation above resistance. This is why many traders continue to focus on short positions near the upper levels. The support near 1.3735 and the historical support at 1.3718 are now the key areas to watch. If the bears manage to break below these zones with strong momentum, then the downside movement could accelerate further toward deeper correction targets. For now, traders are also carefully protecting their risk, with stop-loss levels mostly placed above 1.3768 and partial profits expected near the first support levels.

The overall structure of USDCAD still suggests that the recent bullish movement may only be a temporary pullback inside a larger bearish trend. The pair already tested the 50% Fibonacci retracement resistance, and despite the bullish pressure, there is still no clear confirmation that buyers can continue toward the 61.8% level. Technically, the break above the MA200 attracted bullish attention, but the market still needs stronger momentum to confirm a long-term upward continuation. On the hourly chart, the pair earlier formed a rebound from support at 1.3578, but after reaching 1.3765, two consecutive bearish engulfing candles appeared, signaling seller activity once again. The volume indicator is currently giving weak bearish signals, while the MACD still supports limited bullish momentum, creating mixed conditions in the short term. Because of this, many traders expect USDCAD to first decline toward lower support zones before any new upward attempt develops. However, if the dollar continues strengthening globally, the pair could still rise toward 1.3780 or even the 1.3800 area. Despite this possibility, many market participants still prefer looking for medium-term selling opportunities from higher resistance zones, especially if bearish price action appears again after the market opens.