Market NewsTechnical Analysis

USD/CAD: Bull Looks Good to Continue Its Move amid Bear’s Zone

USD/CAD Economic Indicators BoC
  • USD/CAD is traded at a critical level on the H4 chart from where it may find its next direction.
  • The H1 chart looks bullish by obeying a trend line.
  • 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 price has been bearish on the H4 chart. The simple moving average 30 has been working as a resistance. At the last rejection, it produced a bearish engulfing candle and made a new low. However, it has found its support around 1.34800. Since then, it has been heading towards the North. On its way, it made a breach at a significant horizontal level at 1.34450. However, the SMA 30 has been working as resistance. The buyers may wait for the price to make a breakout at the SMA 30 to look for long opportunities. A bullish breakout may push the price towards 1,36200.

On the downside, if the chart produces a bearish reversal pattern, the price may head towards the South and make a new lower low. In that case, the price may find its support around 1.34000.

USD/CAD H1 chart
USD/CAD H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has been up trending by obeying a trend line. At the last bounce, it produced a bullish engulfing candle and headed towards the upside. Upon finding its resistance around 1.35550, it has been having a bearish correction. The buyers may wait for the chart to produce a bullish reversal pattern at the trend line’s support to go long in the pair. The price may find its resistance around 1.35850.

On the downside, if the price breaches the trendline’s support, the sellers may look to go short in the pair and drive it towards the South. The price may find its next support at the last swing low at 1.34800.

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

Contact and follow Tareq on Twitter: @tareqfpn

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