Market NewsTechnical Analysis

USD/CAD: Bear Looks Good, A Horizontal Support is in Play

USD/CAD Economic Indicators BoC
  • USD/CAD has found its resistance at a horizontal level and trades below the SMA 30 on the H4 chart.
  • A horizontal support has been holding the price.
  • The H1 chart looks bearish approaching at the last swing low.
  • Intraday minor charts have been bearish.
USD/CAD H4 chart
USD/CAD H4 chart

USD/CAD -Technical Analysis- H4 chart

The chart shows that the price upon finding its resistance made a breakout at the simple moving average 30’s support. As of writing, the pair trades around the level of 1.35500. The price reacted at this level several times. Thus, the sellers are to keep an eye on the price action around this level. A breach at the level may generate bearish momentum and drive the price towards the South. The price may find its support around 1.34800.

On the other hand, if the level holds the price again as a support and ends up producing a bullish reversal pattern, the buyers may go long above the SMA 30’s resistance. The price may find its next resistance around 1.36600.

USD/CAD H1 chart
USD/CAD H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has been heading towards the South with good momentum. However, it trades around the level of 1.35500, where the price reacted multiple times. Thus, it may consolidate around this level. The sellers must wait for a breakout to go short below the level. It may find its next support around 1.35180.

On the upside, if the level produces a bullish reversal patter, the buyers may look to go long in the pair. The pair may get bullish above the level of 1.35650. In case of that, it may find its next resistance around 1.36000.

Considering both charts, it seems that the H1 chart may play a vital role to determine its next route. Traders are to keep an eye on the price action of the H1 chart around the level of 1.35500.

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

Contact and follow Tareq on Twitter: @tareqfpn

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