USD/CAD: Bear Waits to Make a Breakout at a Pivotal Support

• USD/CAD has been bearish on the H4 Chart.
• The pair has found a horizontal resistance.
• The H1 Chart looks choppy.
• Intraday minor charts have been choppy.

USD/CAD- Technical Analysis-H4 Chart

The H4 chart shows that the price made a bearish move on the H4 chart upon finding its resistance around 1.38000. On its way, it made a bearish breakout at the simple moving average 30. In consolidated after the breakout and then headed towards the South again. The chart shows that the pair has been traded around 1.35700 for a while. The sellers may wait for the price to make a bearish breakout at the level to go short in the pair. The price may find its next support around 1.35000.

On the upside, if the level continues to hold the price as a support, the price may make a bullish correction. It may find its resistance at the SMA 30. A breakout above the SMA 30 may make the pair bullish and make a new higher high.

Price Action Analysis- H1 Chart

The chart shows that the price has been down trending by obeying a bearish trend line. It has several rejection at the trend line’s resistance. As of writing, the pair trades at the trend line’s resistance as well. However, it has found its support at the horizontal level 1.35700. Thus, the sellers may wait for the price to make a breakout at the horizontal support to go short in the pair. A breakout may drive the price towards 1.35300.

On the upside, if the price breaches the trend line’s resistance, the buyers may wait for the chart to confirm the breakout followed by a bullish reversal pattern to go long in the pair. In case of a bullish breakout, the pair may find its resistance at 1.36700.

Considering both charts, it seems that the sellers may be eagerly waiting for the price to make a breakout at the horizontal support. A breakout at the support may make the pair remain bearish for some days.

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

Contact and follow Tareq on Twitter: @tareqfpn