- USD/CAD has been choppy on the H4 chart.
- The price seems to have found its horizontal resistance.
- Simple Moving Average 30 has been working as support.
- The H1 chart seems to be bearish upon finding its horizontal resistance.
USD/CAD- Technical Analysis-H4 Chart
The H4 chart shows that the price made a decent bullish move around the simple moving average 30’s support. However, the level of 1.36980 has been working as resistance. As of writing, the price has been bearish on the current H4 candle. If it closes as a bearish engulfing candle, the sellers may look to go short in the pair. If the price breaches 1.36000, it will be considered as a neckline breakout of a double top. Thus, it may generate good bearish momentum and drive the price towards the downside. The price may find its next support around 1.35000.
On the upside, the buyers may want to wait for the price to make a breakout at that significant horizontal resistance to go long in the pair. If the price breaches 1.36980, the buyers may push the price towards the North. The price may find its resistance around 1.37800.
Price Action Analysis- H1 Chart
The chart shows that the price had a strong rejection at the horizontal resistance at 1.36980. It produced a bearish inside bar and headed towards the South in a hurry. The sellers seem to be very keen to go short in the pair and drive the price towards the downside. The price may find its support around 1.36000. However, the way it has been heading towards the South, it seems that it may end up making a bearish breakout there. If that happens, the price may find its support around 1.35700.
The H4 chart is getting bearish. The H1 chart has been very bearish. Thus, it seems that the bear is going to dominate in the pair for a while.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn