USD/CAD Technical analysis

Note: This section contains information in English only.
Source: Dukascopy Bank SA
1.4000 area is significant because it was a strong floor, or support, for much of last week. Now that the price is below it, this level has turned into a powerful resistance. The most recent price action, now showing a bit more of a pullback to 1.39847, confirms that buyers tried to break through this level but failed, and sellers have pushed the price back down.

RSI indicator confirming the strength of the recent rally. However, it has clearly turned down, which signals that the bullish momentum has stalled at this resistance.



Currently, the most active scenario is a bearish rejection. If the price continues to fail at 1.4000, it will likely fall back to the next support level around 1.3940.

Alternatively, if buyers can gather enough strength to push the price back up and, more importantly, close an hourly candle above 1.4000, it would be a very bullish sign. This would suggest the recent rally is not just a pullback and that the price could continue rising toward the next target at 1.4070
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