USD/CAD turned lower after failing at 1.4060, with price action slipping into negative trades and stabilizing around the 1.4000 pivot as sellers probe for follow-through.
Technical:
The pair broke its ascending support line, and simple moving averages have flipped to overhead resistance, reinforcing a near-term bearish tilt on the 4-hour chart while price holds below the short-term downtrend cap.
Base case:
While below 1.4045, downside pressure is favored, with scope to 1.3970 first and 1.3940 as the next support area if momentum persists.
Alternative:
A decisive break and hold above 1.4045 would neutralize immediate downside risk and could accelerate a retest of 1.4090.
Risk:
Geopolitical/trade headlines can trigger abrupt two-way moves. Use disciplined sizing and clear invalidation levels; conditions may not suit all risk profiles.
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: 1.3970 | R1: 1.4045 |
S2: 1.3940 | R2: 1.4090 |
S3: 1.3905 | R3: 1.4115 |