- USD/CAD made a good bullish move but failed to hold the breakout level.
- Simple Moving Average 30 is getting flat.
- Intraday price action has been bearish.
USD/CAD- Technical Analysis- H4 Chart
The pair upon finding its support around 1.35000 headed towards the North and made a bullish breakout at the Simple Moving Average 30. To add more fuel to it, the pair closed one of its H4 candles above 1.36350. The very next candle closed as a bearish inside bar closing right at the breakout level. This was the level, where the buyers would have been waiting for to go long upon having a bullish reversal pattern. As of writing, the price breached the breakout level. The pair trades below the level. If the pair trades below that horizontal resistance for two more candles, the pair may get choppy. However, if the next candle comes out as a bullish engulfing candle closing above the horizontal resistance, the buyers may go long in the pair and push the price towards 1.37000.
Price Action Analysis-H1 Chart
The H1 chart looks all set for the sellers to go short. The price headed towards the North by obeying a trend line. However, it found its horizontal resistance above the last week’s high and made a bearish move. It breached the bullish trend line followed by breakout confirmation and bearish reversal candle. The sellers may look to go short from here. The bearish engulfing candle actually formed at a confluence level since last week’s higher high is right at that horizontal level as well.
The H4 chart looked good for the buyers. It now looks bullish-neutral. However, the H1 chart looks very lucrative for the sellers to go short. Most probably, the bear is going to win here and take the price towards the South.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn