USDCAD US Dollar/Canadian Dollar

USDCAD London Session Report - 2026-01-12

Session London Session
Date January 12, 2026
Bias
βšͺ Neutral
Confidence Low

Session Snapshot

  • Open: 1.38738
  • High: 1.38784
  • Low: 1.38680
  • Close: 1.38752
  • MCM State: Accumulation (tight consolidation, low volatility)
  • Volume Context: Moderate (North American cross-border flows)
  • News Catalyst: USD weakness offset by CAD softness on stable oil prices; pair rangebound ahead of CPI

Fundamental Drivers

USDCAD consolidating as USD weakness (DXY -0.35%) meets CAD headwinds. As commodity currency, CAD sensitive to oil prices (stable). Tomorrow's US CPI (1:30 PM EST) critical - soft CPI weakens USD, pushing pair lower; hot CPI supports USD, driving pair higher. Watch oil correlation.

News Risk Assessment

  • Event Risk: High (US CPI Jan 13 at 1:30 PM EST)
  • Impact: Soft CPI = USD weakness = downside for USDCAD; hot CPI = upside
  • Action: Avoid entries 30 min before/after CPI; watch oil price correlation

Supply/Demand Zones

Demand Zones

Zone Range Status Strength
D1 1.3850-1.3865 Fresh Strong
D2 1.3820-1.3835 Fresh Strong
D3 1.3780-1.3800 Fresh Moderate

Supply Zones

Zone Range Status Strength
S1 1.3910-1.3925 Fresh Strong
S2 1.3950-1.3970 Fresh Moderate
S3 1.4000-1.4020 Fresh Moderate

Support/Resistance Matrix

Level Type Price Strength Distance
R3 Psychological 1.4000 Strong +0.9%
R2 Structural 1.3950 Moderate +0.6%
R1 Structural 1.3910 Strong +0.3%
Current - 1.38752 - -
S1 Structural 1.3865 Strong -0.1%
S2 Structural 1.3850 Strong -0.2%
S3 Psychological 1.3800 Strong -0.5%

Liquidity Hunt Map

  • Buy-Stop Clusters: Above 1.3910-1.3925 (recent resistance)
  • Sell-Stop Clusters: Below 1.3850 and 1.3800 (structural/psychological support)
  • Recent Sweeps: None in last 8 hours - tight consolidation
  • Next Target: Possible test of 1.3910 or hunt below 1.3850 depending on CPI

Fear Factor Meter

FEAR [πŸ”΄πŸ”΄πŸŸ πŸŸ πŸŸ‘πŸŸ‘πŸŸ’βšͺβšͺβšͺ] GREED
                    β–²
              Score: 6/10 β€” Neutral (Range-Bound)

Inputs: USD weakness, CAD commodity sensitivity, oil prices stable, low volatility (0.08%)

Context: Balanced forces. CPI catalyst needed for directional move.

Directional Bias

  • Bias: Neutral
  • Confidence: Low
  • Rationale: Accumulation phase with 0.08% volatility (lowest among pairs). Conflicting USD weakness vs CAD commodity correlation. YTD +1.14% but lacking momentum. CPI outcome determines direction.

Action Zones

Setup Entry Trigger TP1 TP2 SL
🟒 Long 1.3850-1.3865 Bullish rejection at demand 1.3910 1.3950 1.3835
πŸ”΄ Short 1.3910-1.3925 Bearish engulfing at supply 1.3865 1.3830 1.3940
πŸ”΄ Short (Breakout) 1.3848-1.3852 Break below 1.3850 with volume 1.3800 1.3770 1.3875

Risk Note: Extremely low volatility (0.08%) = low edge in ranging market. Wait for CPI catalyst.

Momentum View

Accumulation phase with 0.08% volatility signals coiling for directional move post-CPI. IF CPI softer than expected β†’ probable break below 1.3850 toward 1.3800 as USD weakens. IF CPI hot β†’ likely test of 1.3910 resistance as USD strengthens. Risk-reward favors waiting for clear breakout over ranging entries - no edge in ultra-tight consolidation.


When momentum aligns, we move.