The Canadian Dollar has reached its weekly uptrend support around 1.3950 [Video]
|USD/CAD technical outlook
The Canadian dollar has reached its weekly uptrend support around 1.3950, with immediate levels to watch at 1.3920. Resistance is clustered at the 55‑day moving average (1.4016) and the 38.2% Fibonacci retracement (1.4018).
This sets up a straightforward tactical play:
- Buy dips into the trendline support, covering towards 1.4010.
- Sell rallies into the 1.3990–1.4010 zone, with risk only if we see a close above 1.4020/25.
Weekly Stochastics are turning bearish, suggesting the uptrend from July is losing momentum. Daily charts remain neutral but show a Double Top pattern, pointing to potential downside pressure.
Key downside levels if 1.3950 breaks: 1.3885 → 1.3835.
In short: the market is at a pivotal juncture. Respect the trendline, but be ready to fade strength into resistance.
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