USD/CAD: H1 Support is in Play

• USD/CAD has found a horizontal resistance at 1.35280.
• The SMA 30 has been working as a support on the H4 chart.
• The H1 chart has been choppy around a support for a while.
• Intraday minor charts have been choppy.

USD/CAD -Technical Analysis- H4 Chart

The chart shows that the price made a bullish move and breached the simple moving average 30. It traded above the moving average for a while. However, the level of 1.35280 has been working as a resistance, where it had a rejection. As of writing, the pair trades around right at the support of the SMA 30. It means the buyers are to wait for the chart to make a bullish move followed by a breakout at the horizontal resistance. In that case, the price may find its next resistance around 1.35850.

On the downside, if the price breaches the SMA 30, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern at the value areas to go short in the pair. In case of a bearish breakout, it may find its support around 1.34500.

Price Action Analysis- H1 Chart

The chart shows that the price has been consolidating around 1.35000. It has been a significant level, where the price reacted several times. Notably, it is a round number as well. Thus, traders will be eyeing on the price action around this level to find its next direction.

A bullish reversal pay push the price towards the swing high. On the contrary, a bearish breakout may drive it towards the level of 1.34630. Considering the risk-reward on these two cases, it seems that a bearish breakout offers better risk-reward.

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

Contact and follow Tareq on Twitter: @tareqfpn