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The technical outlook remains unchanged, with the upward trend continuing to dominate the movements of the USD/CAD pair. This comes after repeated closes above the pivotal 1.3800 support level, which has reinforced the pair’s positive outlook.
Technical Outlook – 4-Hour Timeframe
The pair is currently facing a strong resistance level around 1.3885. We find that the Relative Strength Index is clearly in the overbought area, which may give the pair a chance to sell off from this overbought state. This does not conflict with the overall daily upward trend.
Probable Scenario
We may see a limited downward bias if short-term trading remains stable below 1.3885, with the goal of initially retesting 1.3840. It’s important to note that this minor correction scenario does not conflict with the overall daily upward trend, which has targets around 1.3920 and then 1.3965 once the 1.3905 resistance level is confirmed to be broken.
Fundamental Note:
Today, we are awaiting high-impact economic data from the US economy: “Weekly Unemployment Claims, Preliminary Reading of the Services and Manufacturing PMI.” This data may cause strong price volatility when released.
Warning
The risk level is elevated amid current trade and geopolitical tensions, and all scenarios could be possible.
Disclaimer
Trading in CFDs involves risks, and therefore all scenarios are subject to potential outcomes. The analysis provided above is not a recommendation to buy or sell but rather an illustrative reading of price action on the chart.
| S1: 1.3820 | R1: 1.3905 |
| S2: 1.3760 | R2: 1.3940 |
| S3: 1.3730 | R3: 1.3990 |
