FX.co ★ Konnect2fx | USD/CAD

USD/CAD on the H4 chart is maintaining a strong bullish structure after a steady rally that started from the lows seen in late April and early May. The pair has been creating a clear sequence of higher highs and higher lows, which is one of the strongest signs of an uptrend. I can see that buyers have remained in control for several weeks, pushing the market from the 1.3550 area toward the current zone near 1.3950. The recent breakout above the previous resistance around 1.3870 was an important technical event because it confirmed bullish continuation. After the breakout, price paused and entered a small consolidation phase near the highs, which is often a healthy sign in a trending market. Instead of falling sharply, the pair has been holding its gains, showing that buyers are still willing to support higher prices. Volume has remained relatively active during the advance, suggesting that market participation has been supportive of the bullish move. The RSI is currently around the 60 level, which indicates positive momentum without being extremely overbought. I think this is important because it means the market still has room to continue higher if buying pressure remains strong. The recent candles show some hesitation near the top, but there is not yet enough evidence to suggest a major bearish reversal. As long as price remains above the breakout zone, the overall trend continues to favor the bulls.

Looking ahead, the next key question is whether USD/CAD can maintain its position above the former resistance area and continue its upward journey. I believe the market is currently in a consolidation phase within a broader bullish trend. The area around 1.3870–1.3900 now acts as an important support zone. If buyers continue defending this region, the pair could attempt another move toward 1.4000 and potentially higher levels. I can see that the recent pullbacks have been relatively shallow, which suggests that sellers are struggling to gain meaningful control. The Fibonacci projection visible on the chart also indicates that the market has already achieved an extended bullish target, so some short-term profit-taking would not be surprising. However, a correction does not automatically change the trend. For a stronger bearish signal to appear, price would likely need to break below the 1.3870 support area and start forming lower highs and lower lows. Until that happens, the technical outlook remains positive. I think traders should continue monitoring price action around support levels because they may provide clues about the next directional move. Overall, USD/CAD remains bullish on the H4 timeframe, and the trend continues to favor buyers while the pair holds above key support and maintains its pattern of higher highs and higher lows.