Can USDCAD Hold 1.387 Support as Pressure Mounts?

4 nov

FxNews—The U.S. Dollar began a pullback against the Canadian Dollar after peaking at the 1.395 resistance on August 5. This dip aligns with an overbought signal from the Stochastic Oscillator since October 10. Currently, USD/CAD is around 1.387, filling the Fair Value Gap.

In the 4-hour chart, despite the recent decline, USD/CAD remains above the 100-SMA, keeping the main trend bullish. However, the Awesome Oscillator has turned bearish, and the Stochastic is below 20, signaling a potential consolidation phase.

> Immediate Support: 1.387
> Next Support: 1.382 (100-SMA)
> Critical Support: October 17 low at 1.375
> Resistance Levels: 1.395, 1.40

Forecast

If bears (sellers) close below 1.387, the current downtrend could extend to the 23.6% Fibonacci retracement level, backed by the 100-period simple moving average.

5 nov

Nota

USD/CAD is nearing the 23.6% Fibonacci retracement level at 1.387. Since this is a pivot point, traders should monitor it closely.

6 nov

Trade chiuso: obiettivo raggiunto

The USD/CAD reached the 1.382 target, the 23.6% Fibonacci retracement level.

6 nov

Nota

As of this writing, USD/CAD is filling the bearish Fair Value Gap area while the technical indicators hint at the continuation of the uptrend.

From a technical perspective, a close and stabilization above 1.3859 will likely cause the price to start a new bullish phase. If this scenario unfolds, the next bullish target could be 1.417.

Conversely, if the 1.395 level holds and the 4-hour chart forms a bearish candlestick pattern, the FVG would signal a consolidation phase that could end with the price consolidating sideways between 1.382 and 1.395.