USD/CAD: All Eyes are on Horizontal Support

• The pair had a rejection twice at 1.35700
• Simple Moving Average 30 still holds the price
• 1.35000 has been working as a flipped horizontal support
• Intraday price action may play a vital role

USD/CAD Bullish Reversal at Key Horizontal Support

The pair made a good bullish move last week. It found its resistance 1.35700 before closing its trading week and made a bearish correction. The correction continued at the very outset of the current week. The level of 1.35000 has held the price as a support. The level produced a bullish engulfing candle. However, the buyers were not confident to push the price towards the North. Last week’s resistance may have held back the buyers. As of writing, the pair trades around Simple Moving Average 30. A bearish breakout at SMA 30 may put 1.35000 under pressure. A bearish breakout at 1.35000 may drive the price towards 1.33750.

On the upside, a bullish breakout at the last week’s high may push the price towards the North. The price may find its next resistance around 1.37000.

The H1 Chart Drives the Price towards Key Level of Support

The H1 chart shows that the price had its second rejection around 1.35700 and headed towards the South. It consolidated for a while and made a breakout at today’s lower low. As of writing, intraday price action has been bearish. The price may continue its bearish move to find its support. The H1 chart suggests that 1.35000 may play a momentous role to determine its next direction on the H1 chart. A bearish breakout may add more fuel to its current bearishness. On the other hand, a bullish reversal pattern at the support level may push the price towards the North. The level of 1.35700 may work as resistance on minor time frames. However, a breakout above may push the price towards the North with good bullish momentum.

The H4 chart needs some time to find its next direction. The H1 chart favors the Bear so far. It means today’s intraday price action is going to be crucial to determine its next direction.

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

Contact and follow Tareq on Twitter: @tareqfpn