FX.co ★ Konnect2fx | USD/CAD

USD/CAD Daily Chart Analysis The USD/CAD daily chart remains strongly bullish after breaking higher from the previous consolidation range and printing a clear Market Structure Shift (MSS) to the upside. Price has recently pushed above the Buy Side Liquidity (BSL) area around 1.4000, confirming that buyers are currently in control of the higher-timeframe trend. The strong impulsive rally from the May lows shows aggressive demand, and the pair is now trading near 1.4150 after extending well beyond previous resistance levels. According to the chart, the first Fair Value Gap (FVG) is located around 1.4060–1.4100. This zone could act as a premium retracement area where price may revisit before continuing higher. I can see that the market is currently stretched after a strong bullish run, so a temporary pullback into this imbalance would be a healthy development rather than a sign of weakness. As long as daily candles continue to hold above the 1.4000 psychological level, the overall trend structure remains constructive. The sharp bullish momentum suggests that institutional buying interest is still present, and traders will likely monitor any retracement into the highlighted FVG for potential continuation opportunities.

From a Smart Money Concept perspective, the chart highlights two important demand zones. The first is the FVG around 1.4060, while the deeper and stronger support area is the Order Block plus FVG region near 1.3830–1.3850. I believe this lower zone represents the highest-probability bullish reaction area because it combines both imbalance and institutional demand. If price retraces into either of these zones and forms bullish confirmation, buyers could target fresh highs around 1.4300 and potentially beyond. The blue projection arrows on the chart also suggest a continuation scenario after a corrective move. Meanwhile, the Sell Side Liquidity (SSL) resting near the 1.3550 area remains a longer-term downside liquidity target, but current price action does not indicate that sellers are ready to attack that level. I would remain bullish while the market stays above the major demand zones because the sequence of higher highs and higher lows remains intact. A sustained break below 1.3830 would weaken the bullish outlook and suggest a deeper correction, but for now the technical structure favors further upside after any short-term pullback into the marked FVG areas.