Daily Chart Perspective
On the daily chart, USDCAD approached the one-year range high of 1.3862 but pulled back to 1.37. From a risk management standpoint, buyers may target 1.3620, where a confluence of support levels exists. Sellers, on the other hand, seek a break below the major trendline to target a decline to 1.3225.
4-Hour Chart Analysis
The 4-hour chart indicates a shift towards bearishness after the price broke below a minor upward trendline. A downward trendline and the red 21-EMA define the current momentum. Sellers may enter with a risk defined above the trendline for a potential drop to 1.3620. Buyers aim to invalidate the bearish setup by breaking higher to rally to new highs.
1-Hour Chart Confluence
The 1-hour chart aligns with the bearish outlook on the other timeframes. Fibonacci retracement levels provide additional confluence around the downward trendline. Monitoring the US Flash PMI data release today is crucial, as it can significantly impact market sentiment. This week also features the Canadian Retail Sales report, US Jobless Claims, and US PCE report.
