USDCAD 1H – Bullish Structure Playing Out from Monthly DemandUS Dollar/Canadian DollarFX:USDCADJabu_Souls07Price continues to respect bullish structure after reacting strongly from the monthly demand zone around the 1.3940–1.3960 region. We’ve seen consecutive Breaks of Structure (BOS) to the upside, confirming a clear shift in momentum. The most recent Short-Term Low (SSL) sweep provided liquidity for buyers, followed by an aggressive impulsive push that reclaimed prior highs , a classic demand-driven continuation pattern in line with Smart Money Concepts (SMC). As long as price remains above the last BOS level and continues printing higher-highs and higher-lows, bullish sentiment remains valid. Any corrective pullback into the 1.4000–1.3980 range could offer a potential re-entry opportunity for continuation longs. Macro and Fundamental Drivers Supporting the Long Bias Several fundamental tailwinds support this upside scenario: U.S. Dollar Strength – The greenback continues to gain traction on expectations that the Federal Reserve will maintain higher interest rates for longer, given persistent inflationary pressures and resilient labour data. Crude Oil Weakness – Canada’s currency often moves inversely to oil. With recent softness in crude prices driven by global demand concerns and higher U.S. stockpiles, the CAD tends to underperform, giving USDCAD a natural lift. Yield Differentials – U.S. Treasury yields remain elevated compared to Canadian bond yields, encouraging capital flow toward the USD. Market Sentiment – Broader risk-off conditions are pushing investors toward safe-haven assets like the U.S. dollar, further reinforcing the bullish tone. Technical Outlook Bias: Bullish Key Demand: 1.3940 – 1.3960 (Monthly Zone) Near-Term Targets: 1.4100 → 1.4150 Invalidation: Break below 1.3940 This structure suggests continuation toward upper liquidity zones as long as price maintains bullish order flow. A retracement into lower-timeframe demand would present a healthy correction, not a reversal.