USDCAD US Dollar/Canadian Dollar

USDCAD London Session Report - 2026-01-10

Session London Session
Date January 10, 2026
Bias
🟢 Long
Confidence High

Session Snapshot

  • Current Price: 1.39144
  • 24h Change: +0.32%
  • SSO State: Markup (bullish pennant forming)
  • Volume Context: Moderate (London Session)
  • News Catalyst: Bullish pennant after strong upward move; higher lows consolidation

Fundamental Drivers

USDCAD in markup phase with bullish pennant pattern (consolidation after strong rally). Technical rating "strong buy." CAD weakness tied to oil price volatility and BOC policy uncertainty. USD strength (even at DXY 99.13) supporting pair. Traders reference 1.3780 zone as key support-turned-resistance, with 1.3750 acting as short-term demand. Mixed sentiment—some see downtrend pullback, others see bullish continuation. Pennant suggests directional breakout imminent.

News Risk Assessment

  • Event Risk: Low (no major CAD or USD events today)
  • Impact: Pattern resolution expected; breakout or breakdown soon
  • Action: Wait for pennant break confirmation; avoid premature entries

Supply/Demand Zones

Demand Zones

Zone Range Status Strength
D1 1.3750-1.3780 Fresh Strong
D2 1.3680-1.3710 Fresh Strong
D3 1.3650-1.3675 Tested Moderate

Supply Zones

Zone Range Status Strength
S1 1.3950-1.3975 Fresh Moderate
S2 1.4000-1.4025 Fresh Strong
S3 1.4075-1.4100 Fresh Moderate

Support/Resistance Matrix

Level Type Price Strength Distance
R3 Psychological 1.4000 Strong +0.6%
R2 Extension 1.3950 Moderate +0.3%
R1 Pennant Resistance 1.3930 Moderate +0.1%
Current - 1.3914 - -
S1 Pennant Support 1.3880 Moderate -0.2%
S2 Demand Zone 1.3780 Strong -1.0%
S3 Base Support 1.3680 Strong -1.7%

Liquidity Hunt Map

  • Buy-Stop Clusters: Above 1.3950 and 1.4000 (round number magnet)
  • Sell-Stop Clusters: Below 1.3780 and 1.3680 (demand zones)
  • Recent Sweeps: None; consolidating in pennant
  • Next Target: Upside breakout to 1.3950-1.4000 OR downside to 1.3780

Fear Factor Meter

    FEAR [🟢🟢🟢🟢🟢🟢🟢⚪⚪⚪] GREED
                        ▲
                  Score: 7/10 — Risk On

Inputs: Technical=Strong Buy, Bullish pennant pattern, Higher lows forming

Directional Bias

  • Bias: Long
  • Confidence: High
  • Rationale: Bullish pennant after strong upward move with higher lows consolidation. Technical "strong buy" rating. Favor upside breakout to 1.3950-1.4000 supply zones. Break below 1.3880 invalidates.

Action Zones

| Setup | Entry | Trigger | TP1 | TP2 | SL |
|-------|-------|---------|-----|-----|----||
| 🟢 Long | 1.3880-1.3910 | Pennant support hold | 1.3950 | 1.4000 | 1.3860 |
| 🟢 Long | 1.3930-1.3950 | Breakout confirmation | 1.3975 | 1.4025 | 1.3905 |
| 🔴 Short | 1.3780-1.3810 | Pennant breakdown | 1.3680 | 1.3650 | 1.3830 |

Momentum View

"Bullish pennant forming after strong markup. Higher lows suggest continuation bias. IF breaks above 1.3930, expect momentum chase to 1.4000 psychological level. Break below 1.3880 opens 1.3780 demand hunt. London Session: BUY pennant support OR breakout."


When momentum aligns, we move.