Market NewsTechnical Analysis

USD/CAD: A Wedge is in Play; Be Patient and Keep an Eye for the Next Breakout

  • USD/CAD has been choppy on the H4 chart.  
  • The pair trades around the simple moving average 30.
  • The H1 chart shows the pair gets trapped within a Falling Wedge.
  • Intraday minor charts have been choppy.
USD/CAD H4 chart
USD/CAD H4 chart

USD/CAD -Technical Analysis- H4 chart

The H4 chart shows that the pair has been choppy for a while and looking for a direction. The simple moving average 30 had worked as a resistance earlier. The pair trades around the moving average for a while. However, it has not created any momentum. Traders are to be patient to get a strong price action to find out a direction. Considering the H4 chart, the level of 1.35550 may work as a support. On the other hand, the level of 1.38250 may work as a resistance.

USD/CAD H1 chart
USD/CAD H1 chart

Price Action Analysis- H1 Chart

The H1 chart tells the story why it has been quiet on the H4 chart. The pair has been traded within a Wedge. As of writing, it is traded around the Wedge’s resistance. Thus, it may make a move towards the South. However, it does not look to be making a long bearish move. Traders are to patiently wait here for a breakout at the Wedge’s support or resistance. A breakout at the resistance may push the price towards the level of 1.37750.

On the contrary, if the price makes a breakout at the Wedge’s support, the price may head towards the downside and find its support around 1.36870.

Considering both charts, the H4 chart does not look good for traders. It is going to take time to find a solid direction. However, the H1 chart suggests that it may find its direction soon. Meanwhile, traders on the both charts must be patient to make their trading decisions.

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

Contact and follow Tareq on Twitter: @tareqfpn

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