USDCAD 4-Hour Analysis – Bulls and Bears Battle for Control

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Current Price: 1.37706
Timeframe: 4 Hours

Technical Indicators Overview
SMA (9-period): Price is hovering around the short-term moving average, signaling indecision in momentum.

RSI (14): Currently near the 50 level, showing a neutral momentum—neither overbought nor oversold.

Key Resistance: 1.3800 – A psychological and technical barrier tested multiple times.

Key Support: 1.3700 – A level where buyers previously stepped in to prevent further decline.

Price Action Summary
USDCAD recently saw a strong bullish move towards the 1.3900 area but quickly reversed, pulling back below the 1.3800 mark. Since then, price action has been choppy, suggesting a tug-of-war between buyers and sellers.
On the 4H chart, the SMA 9 is acting as a dynamic pivot, with candles frequently crossing above and below it. This behavior often precedes a breakout, but direction confirmation is still lacking.

RSI Insights
The RSI remains neutral, around 50, indicating a balance between buying and selling pressures. A move above 60 could invite bullish momentum, while a drop below 40 may trigger further selling.

Potential Scenarios

Bullish Breakout:
If price breaks and closes above 1.3800, the next upside target could be 1.3850–1.3900, where previous highs lie.

Bearish Reversal:
Failure to hold above 1.3750 could open the door for a move towards 1.3700, and below that, 1.3650.


Conclusion
USDCAD is in a consolidation phase, awaiting a catalyst for a decisive breakout. Traders should watch the 1.3800 resistance and 1.3750 support for clues on the next directional move.

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