May 6 Chart of the Day - USD/CAD
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
In their first face-to-face meeting Tuesday, President Trump and Canadian Prime Minister Mark Carney didn’t hold back—sparring over Trump's tongue-in-cheek suggestion that Canada become the 51st U.S. state.
While both leaders downplayed any disruption to trade talks, the tension adds fresh volatility to an already sensitive negotiation year for the USMCA agreement.
With tariffs back in the headlines and cross-border rhetoric heating up, today’s Chart of the Day zeroes in on the USD/CAD pair — a vital barometer for traders watching U.S.–Canada economic dynamics.
Let’s take a price action technical analysis look the chart to see where price could be heading next.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
Since May 2023, we've showcased over 500+ Charts of the Day and provide FREE Price Action Trading education to traders who join our highly rated Trade Room.
Monthly Chart
On the monthly chart, we can see where price has fallen dramatically the past 3 months after testing, and producing a false break out, of 10 year highs.
That retreat has both investors and traders closely watching key support levels, which have held for now, as price seemingly has a decision to make regarding its next move.
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a chart's short to mid term outlook.
Weekly Chart
On the weekly chart, we see the selling pressure the past several weeks driving price down to a potential decision zone in the form of a bull 61.8% retracement and multi year trend line poised for a classic retest.
There's certainly more room below for price to continue falling should it choose to - particularly in the form of a change control zone (long gray shaded rectangle).
Change control zones are one of the five price action tools we teach when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash through the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We’ve combined advanced Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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