The USD/CAD 4-hour chart displays a complex price structure with recent upward momentum after finding support in the blue reaction zone (approximately 1.4250-1.4280). Currently trading around 1.4350, the pair appears poised for continued upside movement, with the higher probability scenario being a break above the orange resistance line at 1.4402. This view is supported by the recent series of higher lows and the bullish reversal from the support zone. However, traders should approach this opportunity cautiously, as we remain within a larger corrective structure in the broader market context. This suggests that while the immediate bias favors upside movement, price may still experience downward swings before a definitive breakout. A prudent approach would be to take this trade piece by piece, using smaller position sizes and tighter risk management to navigate potential volatility until the orange resistance is decisively broken.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.