FX.co ★ Konnect2fx | USD/CAD

The USD/CAD daily chart is showing a steady bullish recovery after a long period of mixed movement. Price recently bounced strongly from the 1.3550 support zone and is now trading close to the 1.3850 resistance area. I can see that buyers are still controlling the market because the candles continue making higher lows and the moving average is sloping upward. The current move also looks supported by stable bullish momentum, even though the market is approaching an important resistance level near the Fibonacci 23.6 zone. If buyers break clearly above 1.3850, the next upside target could be around 1.3920 and later 1.4000. I think traders should watch the candle behavior carefully near resistance because the market may slow down before the next breakout. Volume is moderate, which suggests the trend is healthy but not extremely aggressive. I also notice that previous swings created a strong structure, and this often helps the market continue trending higher unless major selling pressure appears suddenly. Overall, the chart currently favors buyers more than sellers on the higher timeframe.

At the same time, traders should remain careful because resistance around 1.3850 has already reacted several times in the past. I believe a temporary pullback is possible before any stronger continuation higher. If the market fails to close above resistance, sellers may push price back toward 1.3760 or even 1.3680 support. I would personally avoid chasing the price too high because the pair already moved strongly upward during the recent sessions. Instead, I would prefer waiting for either a confirmed breakout or a healthy retracement entry. The moving average continues supporting bullish sentiment, and the recent candle structure shows that buyers are still active on dips. However, if price suddenly breaks below 1.3680, the bullish outlook could weaken and the market may return to sideways movement. From my view, patience is important here because the pair is near a decision zone where volatility can increase quickly. Risk management should stay tight because USD/CAD can react sharply to oil prices and economic news from both the US and Canada. Final Trading Plan: Buy Entry: Above 1.3860 after a strong daily candle close Take Profit 1: 1.3920 Take Profit 2: 1.4000 Stop Loss: 1.3780 Alternative Sell Plan: Sell only if price rejects resistance strongly and breaks below 1.3760 Sell Target: 1.3680 Stop Loss: 1.3845