USD/CAD 1H: Bullish Breakout Surges Past 1.3800 –Momentum IntactUS Dollar/Canadian DollarFX:USDCADsharma316What I'm seeing: The USD/CAD 1-hour chart is exhibiting a powerful bullish continuation. Following the consolidation and dynamic support hold we tracked previously, the price has definitively broken out above the previous resistance zones near 1.37700 and aggressively pushed through the psychological 1.38000 handle. We are currently trading near 1.38147, printing strong bullish impulse candles. Why it matters: This breakout validates the broader uptrend structure. The moving averages are now fanned out steeply to the upside, with the faster MA (blue) trailing near 1.37670 and the slower MA (red) near 1.37455. The widening gap between the price action and these moving averages highlights intense buying pressure and high momentum. Those previous resistance levels marked by the dashed lines now establish a very solid floor of structural support. What to expect next: Given the vertical nature of this recent leg up, momentum traders will be looking for continuation, but we should also be prepared for a potential shallow pullback or consolidation phase as the market digests this rapid move. If we see a retracement, the immediate area to watch for support is the previous breakout zone around 1.37800 to 1.38000. A successful retest and hold of this area would offer a textbook continuation setup for the bulls. If momentum carries on without a pullback, watch price action closely for signs of exhaustion at higher local resistance levels. A drop back below the blue moving average (1.37670) would be the first sign that this bullish surge is losing steam.