Market NewsTechnical Analysis

USD/CAD: Bear Continues Its Move with Momentum, a Support is in Play

USD/CAD Economic Indicators BoC
  • USD/CAD has been heading towards the downside from a flipped resistance level.
  • The simple moving average 30 has been its resistance.
  • The H1 chart looks bearish approaching at the last swing low.
  • Intraday minor charts have been bearish in Tokyo session.
USD/CAD H4 chart
USD/CAD H4 chart

USD/CAD -Technical Analysis- H4 chart

The chart shows that the pair has been bearish by obeying the simple moving average 30 for quite a while. The price had a bounce at 1.25950 and made a bullish correction. It has found its resistance around 1.36500 and made a good bearish move. The sellers may wait for the price to make a breach at the last swing low to go short and drive the price towards the South further.

On the other hand, if the pair finds its support at 1.35950 and heads towards the North, the buyers may wait for the price to make a breach at the SMA 30 to go long in the pair. In that case, the pair may find its resistance around 1.37000.

USD/CAD H1 chart
USD/CAD H1 chart

Price Action Analysis- H1 Chart

The chart shows that the pair has been bearish by obeying a trend line. At the last rejection, it consolidated at the trend line’s resistance for a while. Upon producing a bearish engulfing candle, it has made a bearish move. The sellers may take a pause since it approaches at 1.35950.

A bullish reversal followed by a breakout at the trend line’s resistance may change the scenario. The pair may head towards the upside and find its resistance around 1.36350.

On the other hand, if the chart makes a bearish breakout at the last swing low, the sellers may continue to go short and drive the price towards 1.35000.

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

Contact and follow Tareq on Twitter: @tareqfpn

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