- USD/CAD produced a double top at a confluence level on the H4 chart.
- The sellers may wait to go short from the value areas.
- The H1 chart looks bearish consolidating at the moment.
- Intraday charts trades below yesterday’s lower low.
USD/CAD -Technical Analysis- H4 Chart
The chart shows that the price had a rejection at 1.34650 twice. The simple moving average 30 has been working as a resistance as well. It means the sellers may consider it a confluence level. A double top at a confluence level may generate excellent bearish momentum. As of writing, the pair trades below the neckline as well. Thus, the sellers may drive the price towards 1.33400.
The level looks good to hold the price as a support. However, it is very likely that the price may breach the level and continue its bearish move until it reaches the swing low on the H4 chart.
Price Action Analysis- H1 Chart
After making an excellent bearish move, the pair consolidated around 1.34150. The chart produced a bearish inside bar and headed towards the downside. As of writing, the price is on consolidation. The sellers may wait for the price to make a bearish breakout at the consolidation’s low to go short in the pair and drive it towards 1.33700.
On the contrary, if the price makes a bullish breakout at the horizontal resistance, it may make a bearish correction and head towards the upside slowly.
Considering both charts, it is explicit that the pair has been bearish. The double top on the H4 and consolidation after a strong bearish move on the H1 chart suggest that it may continue its bearish move and may offer some excellent entries to the sellers.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn