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Breakout and Rejection Strategy for USD/CAD H4 at Pivot Area 1.3617

Daily Pivot Point Support 3: 1.3530 Support 2: 1.3554 Support 1: 1.3593 Pivot Point: 1.3617 Resistance 1: 1.3657 Resistance 2: 1.3681 Resistance 3: 1.3720 The movement of the USD/CAD currency pair on the H4 timeframe is currently showing a recovery phase after significant bearish pressure in the previous session. Prices seem to have successfully risen back from the 1.3554 support area towards the daily pivot at 1.3617, even approaching the minor resistance at 1.3639. The latest candle structure indicates that a short-term bullish momentum is forming, supported by the rise of the Stochastic indicator entering the overbought area above the 80 level. This condition indicates that buyers still control the price movement, but the market is also entering a correction-prone zone as buying momentum is quite high. The daily pivot point is at the level of 1.3617 and is a crucial area to determine the next direction. As long as the price remains above this level, the opportunity for an increase towards the 1.3657 resistance remains open. If buying pressure strengthens and the H4 candle successfully closes above the first resistance, then the next target could potentially be towards 1.3681 up to the daily highest resistance at 1.3720. This area is the main bullish target as it was previously a strong supply zone. A buying strategy can be considered when the price remains stable above the 1.3617 pivot with solid bullish candle confirmation. An ideal entry would be in the 1.3620–1.3630 area with the first target at 1.3657. If the first resistance is breached, traders can hold positions towards the next target at 1.3681. It is advisable to place a stop loss below the 1.3593 area to anticipate sudden reversals. This strategy is suitable when market volatility increases and the US dollar gains positive sentiment. However, traders should also be cautious of potential rejection at the resistance area. The Stochastic indicator already in the overbought zone indicates a significant possibility of technical correction if a bearish reversal candle appears near 1.3657. If the price fails to break the first resistance and falls back below the 1.3617 pivot, selling pressure may increase towards the 1.3593 support. Breaking this support will open up further declines to 1.3554 and even 1.3530. A selling strategy is safer when a strong bearish confirmation appears below 1.3617. A sell entry can be considered in the 1.3610–1.3600 area with a target for a decline towards 1.3593 and then 1.3554. A stop loss can be placed above 1.3657 to maintain an ideal risk ratio. Traders are advised to remain disciplined in using money management as the movement of USD/CAD is still quite sensitive to US economic data and crude oil prices affecting the strength of the Canadian dollar. Overall, the pivot area at 1.3617 is the key to the USD/CAD movement today. As long as the price is above this level, the bias tends to be bullish. Conversely, if the price falls back and stays below the pivot, bearish opportunities will dominate the market.