FX.co ★ USD/CAD

When evaluating the daily movement of the USD/CAD currency pair, I would like to point out that since the beginning of June this year, the trend has clearly been upward, with the price rising over 5 figures from the 1.3540 minimum to today's high of 1.4080. Moreover, during the recent phase of growth, this high could potentially be surpassed with an attempt to reach the 1.4100 level. However, a medium-term correction is likely to follow as the D1 stochastic indicator is approaching overbought levels, and once the round level of 1.4100 is reached, the bulls' next objective at this stage will be accomplished. Therefore, we can soon expect a correction, at least towards the support range between 1.3985 - 1.3975, or possibly even slightly lower towards the middle of the 39 figure. It is important to understand that there is a margin of error in these assessments, and fixating on 5 or even 10 points on the daily chart is not meaningful. The key point is that the pair is likely to remain within the boundaries of the ascending daily corridor. Therefore, once the stochastic indicator finishes its downward movement and indicates a reversal, we will have a fairly good idea of where this rebound will occur. Based on this value, it will be possible to buy the USD/CAD pair, anticipating further upward movement and consolidation above the 41 figure.