USD/CAD just broke through a key support zone!

How much further can it fall before buyers step in for a more sustained bounce?

Here are the levels we’re watching on the daily time frame:

USD/CAD: Daily

USD/CAD Daily Forex

USD/CAD Daily Forex Chart Faster with TradingView

The U.S. dollar clawed back some ground yesterday, helped by fresh record highs in U.S. equities and mid-tier data that backed a higher-for-longer rate outlook.

Still, the Greenback couldn’t gain much traction against the Canadian dollar, with CAD finding support from stronger crude prices and improving risk sentiment.

Could this keep USD/CAD under pressure in the next trading sessions?

Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. dollar and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!

USD/CAD, which topped out near 1.3950 earlier this month, is now trading closer to the 1.3700 psychological handle near the midpoint of its longer-term range.

A few more bearish candlesticks could pave the way for a move down to the S1 (1.3638) Pivot Point, possibly even the 1.3540 range support.

But if price starts printing long wicks or hesitation candles around S1 and the 1.3650 area, a bounce toward 1.3750 or even back to the 1.3950 resistance zone could be on the table.

Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.

Promoted: Clean Setups Are Easy; Staying Disciplined Isn’t.

USD/CAD is pressing toward key range support, with both breakdown and bounce scenarios in play depending on how price reacts . But as any trader learns the hard way, even the best-looking setup can fall apart without the discipline to stick to the plan.

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