FX.co ★ USD/CAD

USD/ CAD Price Action: I want to discuss the current behavior analysis of the USD/CAD currency pair. As the trading week begins, I plan to move my pending sell order up by 15 points, making it easier for bulls to access without complications. However, the resistance zone between 1.3989-1.4026 may limit bullish pressure, preventing a higher foothold. Although a false breakdown of this resistance zone is possible, I cannot set a wide stop, so I will take the risk and hope there will be no false breakdown. If necessary, I will reevaluate later, which is a better option than overly generous stops. I have outlined my expectations for this currency pair on my daily chart below. The bulls need clarity. Currently, the situation on USD/CAD appears uncertain, as seen not only in the four-hour time frame but also in the daily time frame. The failure to break the local high of 1.3970 suggests potential reversals. Shortened wave movements and deeper pullbacks often precede reversals, indicating impending downturn signals. Although there are signs of a downturn, it is not wise to sell prematurely. A breakdown in the growth structure on the lower time frame is essential.

The Canadian dollar remains confined within a narrowing triangle (wedge), hovering around 1.40280. Selling at this point carries some risk, given the more favorable entry at 1.42040, likely driven by market dynamics. The market exhibits sluggish, reluctant upward movement, aligning with the plan for sales from the specified point above, especially given the RSI divergence on a larger time frame.