TECHNICAL ANALYSIS
On the daily chart, The USDCAD pair maintains a predominantly bullish outlook, even though the recent corrective phase has become more challenging to interpret. Buyers are expected to find support around the red 21 moving average, with their sights set on the 1.3862 high. However, for a more favorable risk management setup, they would ideally prefer a price retracement down to the trendline. On the 4-hour chart, the USDCAD pair is currently trading within an ascending channel, and the price is positioned near the lower boundary of this channel. Here, we have a significant convergence of factors, including the 61.8% Fibonacci retracement level, the lower channel boundary, and the daily red 21 moving average. Buyers are likely to step in at this juncture, maintaining a well-defined risk level just below the channel, as they aim for a potential rally towards the 1.3862 high. Conversely, sellers would be looking for a downward breakout to initiate positions with an eye on the major trendline. Zooming in on the 1-hour chart, a bullish setup is visible around the 1.3660 level. The price has found support at the 61.8% Fibonacci retracement level, prompting buyers to enter the market. If the price manages to breach the recent swing low level around 1.37, it is likely to trigger a more robust upward move, as buyers become more confident in their bullish positions.
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