USD/CAD: Bear Keeps Running, What Next?

• USD/CAD has been bearish on the H4 Chart.
• The pair trades way below Simple Moving Average 30.
• The H1 chart looks bearish.
• Intraday minor charts may make some bullish corrections.

USD/CAD- Technical Analysis-H4 Chart

The H4 chart shows that the price has been heading towards the South with excellent bearish momentum. On its way, it made a breakout at 1.34930. The price had reacted at this level earlier. Thus, the sellers may consider it as of its resistance on the H4 chart, which may play a vital role to keep the pair bearish. As of writing, the SMA30 stays way above the price. Thus, the sellers may wait for the price to consolidate and produce a bearish reversal pattern to go short on the pair. As things stand with the pair, the H4 chart suggests that the pair may find its next support around 1.32800.

On the contrary, the buyers must wait for the pair to produce a strong bullish reversal pattern. A double bottom or a strong bullish momentum breaching 1.34930 may change the scenario. The way things have been going with the pair, it seems it is going take time for that to happen.

Price Action Analysis- H1 Chart

The chart shows that the price has been heading towards the South in a hurry. The last wave was extremely bearish. On its way, it made a significant bearish breakout at 1.34730. Additionally, the pair has been obeying a bearish trend line as well. Thus, the bear may dominate on this chart for a while. As of writing, the pair produced a spinning top, which may make the pair consolidate. If the pair consolidates and produces a bearish reversal pattern, the sellers may go short below today’s low at 1.33800.The price may find its next support around 1.33150.

The buyers may not look to go long in the pair soon. Unless, it produces a strong bullish momentum, the pair is not going to offer long entries with lucrative risk-reward.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News Contact and follow Tareq on Twitter: @tareqfpn