USDCAD 15-Min Setup: Buyers Defend Crucial ZoneGood morning traders,
Trust you are doing great.
Kindly go through my analysis of USDCAD currency pair.
Overview
The USDCAD M15 chart presents a bullish price setup around the 1.38350–1.38410 support zone, with current price action consolidating just above this area.
Idea
Price bounced off the key support zone (blue box), suggesting buyer interest. The BB Squeeze momentum indicator shows weakening selling pressure, which could signal an upcoming bullish move.
Key Support: 1.38350
Upside Targets: 1.38650, 1.38880, and 1.39039
Invalidation: Setup fails if price breaks below 1.38280
From the fundamental context, we can see that the Canadian dollar (CAD) is moving more in sync with the U.S. dollar (USD) again, a return to its historical behavior. This happens because Canada was spared from certain tariffs, making its economy more closely tied to U.S. growth sentiment—a key bullish factor for CAD when the USD strengthens. But because CAD is now closely tied to U.S. sentiment, CAD won't weaken as sharply, which might explain why the price is consolidating instead of spiking aggressively. As such, we might see a slow but steady move on the pair as time progresses.
Conclusion
As long as the price holds above the 1.38350 support zone, a bullish continuation toward the mentioned targets is likely.
Cheers and happy trading.
