Technical Analysis
On the 4-hour chart, USD/CAD has broken above the 1.3746 resistance level, which corresponds to the top swing of the recent rally from 1.3687.
The breakout above this level is a bullish signal, reinforced by a positive RSI reading above 70, indicating strong buying momentum.
The MACD histogram is in positive territory, and the stochastic oscillator remains near overbought levels, showing sustained bullish energy.
Price action seems to retest the broken upper boundary of a descending channel drawn from the last high near 1.3723-1.3747.
This resistance zone near 1.3770-1.3783 also coincides with the 141.4% and 161.8% Fibonacci extensions, marking key targets for continuation should bulls maintain control.
Alternative Scenario
If the price fails to hold above the 1.3746 breakout level and retreats back below 1.3723 (61.8% Fibonacci retracement), we could see a pullback towards the lower support zone near 1.3687. A breakdown below this support may extend the correction into the mid-1.3600s, retesting the lower channel boundary.
On the 4-hour chart, USD/CAD has broken above the 1.3746 resistance level, which corresponds to the top swing of the recent rally from 1.3687.
The breakout above this level is a bullish signal, reinforced by a positive RSI reading above 70, indicating strong buying momentum.
The MACD histogram is in positive territory, and the stochastic oscillator remains near overbought levels, showing sustained bullish energy.
Price action seems to retest the broken upper boundary of a descending channel drawn from the last high near 1.3723-1.3747.
This resistance zone near 1.3770-1.3783 also coincides with the 141.4% and 161.8% Fibonacci extensions, marking key targets for continuation should bulls maintain control.
Alternative Scenario
If the price fails to hold above the 1.3746 breakout level and retreats back below 1.3723 (61.8% Fibonacci retracement), we could see a pullback towards the lower support zone near 1.3687. A breakdown below this support may extend the correction into the mid-1.3600s, retesting the lower channel boundary.
Disclaimer
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.
Disclaimer
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.