USDCAD Analysis: Drop to the Channel Floor; Are Buyers Giving UpU.S. Dollar / Canadian DollarFOREXCOM:USDCADhosein8731After the price reached the top of the channel and the resistance zone of 1.40577 to 1.40682, sellers successfully created significant selling pressure in the market. Ultimately, with this sustained pressure, they drove the price down to the channel floor and the support zone of 1.38981 to 1.38630. Now, we must observe the price reaction in this area and see whether buyers can prevent further price declines. In the current structure, the most crucial point to consider is the long-term bearish trend of USDCAD. Thus, simply reaching the bottom of the descending channel does not mean we should seek buy positions, as trading against the main trend without proper confirmation can be highly risky. For us to state that the short-term market structure is turning bullish, the upward breakout of the last trading node at 1.38862 to 1.38937 is of great significance. As long as this range is not broken to the upside, we cannot say that the short-term market power has fully shifted to the buyers. However, if we see buyers entering and creating sufficient buying pressure within the support zone of 1.38981 to 1.38630, and the price then manages a valid breakout above the 1.38862 to 1.38937 node, the likelihood of a price move toward the channel midline and the 1.39537 zone will increase. Consequently, in the current situation, the price's reaction to the support zone, especially how buyers approach the 1.38862 to 1.38937 level, is highly important. Until this node is broken upward, we cannot confirm a short-term structural shift, and we must still consider the possibility of continued selling pressure.