Markets are about to focus on U.S. and Canadian jobs data, with USD/CAD’s mid-channel resistance offering clues on which currency takes control.
Will the pair extend its broader downtrend? Or will buyers step in and push price back toward higher inflection points first?
We’re taking a closer look at the 4-hour chart!
USD/CAD 4-hour Forex Chart Faster with TradingView
Improved U.S. dollar demand tied to market uncertainty has pushed USD/CAD higher in recent sessions.
Still, the tide could turn back in the Canadian dollar’s favor as both the U.S. and Canada roll out key jobs data in the days ahead.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. dollar and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CAD has been in a clear downtrend since late November, but it bounced off the 1.3500 psychological handle last week and is now hovering near the 1.3700 area.
The 1.3700 zone lines up with the 50% Fibonacci retracement of January’s downswing and sits near the middle of the ascending channel, making it a key decision area for the pair.
A bearish reaction from this zone could send USD/CAD back toward the 1.3500 lows, with room to carve out fresh February lows if sellers stay in control.
If upcoming themes instead give the dollar another lift, USD/CAD could push toward higher inflection points around 1.3800 near the SMAs or even test the 1.3850 channel resistance before downside pressure reappears.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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