Market NewsTechnical Analysis

USD/CAD: Bear Moves Slowly towards Bull’s Den

USD/CAD Jobs Report Powell speech
  • USD/CAD has been looking for its resistance after being bearish on the H4 chart.
  • The sellers may wait for the price to make a longer correction to find its resistance at a flipped level.
  • The SMA 30 has been working as a resistance.
  • The H1 chart has been choppy.
USD/CAD H4 chart
USD/CAD H4 chart

USD/CAD -Technical Analysis- H4 chart

The chart shows that the price made a strong bearish move upon finding its resistance on the simple moving average 30. The price then has found its support around 1.33500. It had double bounces at the level. As of writing, the pair trades above the level of 1.3390, which is very significant. The chart suggests that the pair may continue its bearish correction. The level of 1.34800 may work as a resistance. If the horizontal level and the SMA 30 both work as a resistance and produce a bearish reversal pattern, the sellers may go short in the pair again and drive the price towards the level of 1.33850.

A breakout below the level of 1.33500 may attract the sellers too. In that case, the price may find its support a bit above around 1.32500.

USD/CAD H1 chart
USD/CAD H1 chart

Price Action Analysis- H1 Chart

The price gets caught within a horizontal channel. The level of 1.33500 has been working as the support where the price bounced twice. The level of 1.34000 has been working as a resistance where the price has been roaming around for a while. A breakout above may push the price towards the level of 1.34650.

On the contrary, if the resistance level ends up producing a strong bearish reversal candle, the sellers may drive the price towards the channel’s support again.

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

Contact and follow Tareq on Twitter: @tareqfpn

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