TRENDING:

GBP/USD

XAU/USD

USD/CAD Price Analysis: Bears eye 1.3500 key week low

USD/CAD bears are moving in and eye a run to last week's lows.
The current 15-min chart's M-formation could be key in this regard.

Ross J Burland FXStreet

USD/CAD bears are back in the driver's seat as the market is a wash with US dollar longs that are being squeezed despite the red-hot US inflation data on Thursday. A resurgence in the oil price is also benefitting the loonie in late afternoon trade on Wall Street which has flipped risk-on. The following is a top-down analysis that arrives at a bearish thesis for the days ahead while below last week's highs of near 1.3850.

USD/CAD weekly chart

The price has reached a weekly resistance area and a correction could be on the cards for the meantime before the next move up.

USDCAD daily chart

The daily chart is also encouraging bears to the table, having spiked and pinned out on the day so far. The bears, however, need to get below the horizontal and trendline support around 1.3680.

USD/CAD H1 chart

The hourly chart shows the price at the upper end of a box. Therefore, the path of least resistance is to the downside at this juncture with the market having peaked out on Thursday's CPI rally. The highs and lows of the significant days are plotted on the chart and the break of Friday 7 low will be a significant development.

USD/CAD M15 chart

The price has carved out a 15-minute M-formation and should the price hold below it on a restest, followed preferably by a bearish engulfment of the current bullish correction, then the bears will be on track for further downside before the week is out.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD retreats toward 1.1700 on modest USD recovery

EUR/USD stays under mild bearish pressure and trades below 1.1750 on Friday. Although trading conditions remain thin following the New Year holiday and ahead of the weekend, the modest recovery seen in the US Dollar causes the pair to edge lower. The economic calendar will not feature any high-impact data releases.

GBP/USD struggles to gain traction, stabilizes near 1.3450

After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and trades marginally lower on the day at around 1.3450 as market participants remain in holiday mood.

Gold climbs toward $4,400 following deep correction

Gold advances toward $4,400 and gains more than 1.5% on the day after suffering heavy losses amid profit-taking heading into the end of the year. Growing expectations for a dovish Fed policy and persistent geopolitical risks seem to be helping XAU/USD stretch higher.

Cardano gains early New Year momentum, bulls target falling wedge breakout

Cardano kicks off the New Year on a positive note and is extending gains, trading above $0.36 at the time of writing on Friday. Improving on-chain and derivatives data point to growing bullish interest, while the technical outlook keeps an upside breakout in focus.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).