FX.co ★ USD/CAD

USDCAD Technical Outlook: This article focuses on analyzing the price movement of USD/CAD. To predict a more direct move, the current hourly candlestick must close below the ascending trend line. This could signal a further decline and the formation of a new bearish zigzag pattern. The recent rally in crude oil prices suggests a larger pullback is needed, but the market is remaining cautious. We need to wait to see if buyers advance toward the key resistance level of 1.35893. A small decline followed by a rebound is likely ahead. However, we recommend avoiding hasty predictions and waiting until buyers consolidate their positions before considering entering the market. It is premature to buy at current levels; it would be better to wait for a clear move.

While the proposed scenario has a high probability of success, it is important to consider alternatives. On the hourly chart, buyers are attempting to regain control, but the pair remains in a vulnerable zone and sellers could soon take control. The price is approaching the 50% resistance level at 1.35893 (slightly below 1/20 of the angle). This suggests a possible trend reversal and weakening of downside momentum. However, as the market direction remains uncertain, we are considering both possibilities. While a bearish reversal is likely, a break below the corrective low of the ascending trend line at 1.35893 remains to be determined. If buyers are unable to maintain the upside momentum, sellers could take control and push the pair down to a critical support level, potentially triggering a bullish reversal.