USD/CAD: A Confluence Level is Under the Spot Light

• USD/CAD has been having a bullish correction with good momentum.
• The pair may find a confluence resistance soon.
• The H1 chart looks good for the buyers.
• Intraday price action has been bullish.

USD/CAD- Technical Analysis-H4 Chart

The pair made a long bearish move on the H4 chart. It has found its support around 1.36300 and produced a bullish engulfing candle. Since then the price has been heading towards the North in a hurry. The buyers may look to go long and push the price towards 1.37570. The chart shows that the simple moving average 30 and the horizontal level 1.37570 may work as a confluence level of resistance. If the chart produces a bearish reversal pattern at the confluence resistance, the sellers may go short and drive the price towards the South aggressively. The price may find its support around 1.36300. However, there is a good chance that it may end up making a bearish breakout at the last swing low.

On the contrary, if the price breaches the SMA 30 and the horizontal level with a bullish momentum, the scenario will be changed. The buyers will come into play and push the price towards the last swing high at 1.39000.

Price Action Analysis- H1 Chart

The chart shows that the price has been heading towards the North by obeying a bullish trend line. At the last bounce, it produced a bullish inside bar. However, the buyers have been pushing the price with good momentum. It may find its resistance around 1.37570. The buyers may wait for the price to make a bullish breakout at the level to find long opportunities again. In case of a bullish breakout, it may find its resistance around 1.28250.

On the other hand, if the price breaches the bullish trend line, the sellers may look to go short in the pair and drive the price towards the last swing low at 1.36300.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn