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USD/CAD rebound meets resistance near 1.3927 amid key technical levels
The outlook flags a move above 1.3927 as a trigger for a stronger rally toward 1.4050, while a break under 1.3841 first points to a retest of 1.3730.
USD/CAD has rebounded for an extended stretch, suggesting short term bottoming around 1.3730, according to Action Forex. The analysis keeps an initial mildly bullish bias for the week, but it also highlights that upside could be capped by nearby resistance.
Action Forex expects strong resistance at the 38.2% retracement of 1.4247 to 1.3730, located at 1.3927 to limit gains. It adds that a break of 1.3841 would likely lead to a retest of 1.3730, while a firm break of 1.3927 would open the door to a stronger rally toward the 61.8% retracement at 1.4050.
Looking further out, the piece says that medium term risk stays tilted to the downside as long as the 1.4247 resistance level holds for rebounds. In the broader scenario, it notes that a firm break of 1.3480 support would pave the way to a 100% projection to 1.2936, while sustained trading below the 55 M EMA around 1.3634 could also point toward the 38.2% retracement to 1.2600.