The USD/CAD pair witnessed a clear breakout of a key technical resistance level at 1.3855, following a period of sideways trading within a narrow range. The pair appears to be forming a short-term technical bullish wave supported by momentum indicators, as markets await crucial US and Canadian data.
Price Overview
- Current price: 1.38556
- Near-term trend: Technically bullish
- Nearest resistance: 1.38664
- Key current support: 1.38265
The pair rebounded from the support level of 1.38265, breaking the resistance at 1.3855 and is now approaching a key resistance level at 1.38664. A breakout could open the way to 1.38790 in the near term.
Technical Analysis
Technical Indicators:
- MACD: Showing a positive crossover, strengthening the possibility of a continued bullish trend.
- Stochastic: It is rising strongly but has not yet reached the overbought zone, indicating further room for upward momentum.
Expected Scenarios for Today
Positive Scenario (Breakthrough and Confirmation):
- Continued stability above 1.3855 and a break of 1.3866 could push the pair towards 1.3879 and then 1.3900.
Negative Scenario (Return to Previous Range):
- If the breakout fails and the price falls below 1.3836, we could see a return to 1.3826 and possibly 1.3800.
Trading strategies based on Buy/Sell levels
| USDCAD | In case of buying | in case of selling |
| Entry point | 1.38664 | 1.38369 |
| Target Point 1 (TP1) | First resistance: 1.38790 | First support: 1.38369 |
| Target Point 2 (TP2) | Second resistance 1.38951 | Second support 1.38211 |
| Stop Loss (SL) | 1.38369 | 1.38664 |
The USD/CAD pair has begun to shift its technical structure to the upside after a period of sideways pressure, and we may witness a new breakthrough if a break above the 1.3866–1.3879 levels is confirmed. However, today’s data remains the true deciding factor for the market’s future direction.
