Market NewsTechnical Analysis

USD/CAD: Bull Looks Good but Finds a Massive Resistance

  • USD/CAD is traded within a range on the H4 chart.
  • The pair trades above the simple moving average 30.
  • The H1 chart looks bullish, but it is right at a significant resistance.
  • Intraday minor charts have been bullish.
USD/CAD H4 Chart
USD/CAD H4 Chart

USD/CAD- Technical Analysis-H4 Chart

The chart shows that the pair has been traded within a horizontal range. As of writing, the pair trades around the resistance. Thus, the buyers may wait for the price to make a bullish breakout followed by a bullish reversal pattern at the breakout level to go long in the pair. The simple moving average 30 has been working as a support. Thus, buyers may be more hopeful for a bullish breakout. A breakout may push the price towards the North further and the price may find its next resistance around 1.37800.

On the downside, if the level produces a bearish reversal pattern, the sellers may go short. The price may find its support around 1.36700.

USD/CAD H1 Chart
USD/CAD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been bullish. However, the level of 1.37350 has been a significant level, where the price reacted several times. Thus, the buyers may take a pause here. The price may consolidate again. A bullish breakout at the resistance may push the price towards the North. The price may find its next resistance around 1.37800.

On the contrary, if the level produces a bearish reversal patter, the sellers may be interested to go short in the pair. The price in that case may find its support around 1.37000.

Considering both charts, it seems that traders are to be watchful here. Let us wait what the price does around that massive resistance. In a nutshell, the resistance level holds the key and it will determine the pairs’ next route.

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

Contact and follow Tareq on Twitter: @tareqfpn

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