Canadian Dollar Holds Its Steady Upside Momentum 1/6/2026

Positive trading dominated the USD/CAD pair, recovering some of the losses from previous sessions. In the short term, the pair is attempting to break through the 1.3820 resistance level.

Technical Outlook – 4-Hour Timeframe

Regarding the short term, we maintain a cautiously positive outlook, supported by the 50-day simple moving average providing a positive catalyst.

However, we are seeing negative signs on the Relative Strength Index (RSI) after the pair managed to alleviate oversold conditions.

Likely Scenario:

Positive Scenario (Likely):
Trading remaining above the support level of 1.3775 maintains the bullish bias, targeting 1.3835 as the first target.

Gains could extend further with a break above 1.3835 towards 1.3865 as the next level.

Negative Scenario:
Conversely, a return to trading and stabilization below 1.3775 could temporarily halt the bullish scenario and push the pair under negative pressure, targeting 1.3740 as the first target, followed by 1.3715 as the next level.

Caution: The risk level is high amid ongoing trade and geopolitical tensions, and all scenarios remain possible.

Risk note
Headline risk is elevated. Use prudent sizing and firm stops; reassess quickly if these trigger levels give way.

S1: 1.3775	R1: 1.3835
S2: 1.3740	R2: 1.3865
S3: 1.3710	R3: 1.3900