USDCAD Bulls Eye 1.4140 Amid Momentum ShiftHello Traders,
Take a moment to read my outlook on USDCAD, and share your thoughts
Overview
USDCAD is currently trading at 1.40623, showing bullish trends on both the H4 and H1 timeframes. However, the bullish momentum on the H4 appears to be weakening, suggesting the uptrend may be nearing a potential reversal zone. Market sentiment remains bullish, supported by increased volatility, but momentum on the H1 timeframe has noticeably decreased, signaling reduced upward strength.
Idea
The pair is expected to continue its rise toward the 1.4140 price region, a key resistance level with the potential to halt further upward movement and trigger a bearish reversal. Price action is currently rejecting off the H1 order block, which could act as a short-term support level.
I will monitor the 1.39797 level closely, as a break below this support would invalidate the bullish outlook, signaling a potential shift in market structure. Conversely, a sustained move above the 1.4140 resistance would indicate renewed bullish momentum and the possibility of further gains.
Conclusion
This outlook suggests further upside potential toward 1.4140 which is about 80pips move. However, a clear break below 1.39797 would invalidate this idea, and could provide opportunities for short positions.
Cheers and happy trading!
