USD/CAD: Bull Roams around a Key Support

• USD/CAD has been choppy on the H4 chart.
• The SMA 30 has been working as a support.
• The H1 chart looks bullish having its second bounce at today’s low.
• Intraday minor charts have been bullish.

USD/CAD -Technical Analysis- H4 chart

The chart shows that the price has been consolidating around the simple moving average 30 and a horizontal support at 1.33400. As of writing, the chart has already produced a doji candle. The current candle has been bullish. If it ends up being a bullish engulfing candle, the buyers may push the price towards the upside. The price may find its next resistance around 1.34800.

On the contrary, if the chart makes a breach at the SMA 30’s support, the sellers may consider going short in the pair and drive it towards the South. The price may find its next support around the swing low at 1.31800.

Price Action Analysis- H1 Chart

The chart shows that the price consolidated at 1.33400 for a while. Upon producing a doji candle, it has been heading towards the North with good momentum. However, considering the last move, the chart suggests that the sellers may keep their eyes on the pair to go short below the level of 1.33400. In case of a bearish breakout, the price may find its next support around 1.32900.

On the upside, if the price continues to go towards the North, the buyers may wait for the price to consolidate and produce a bullish signal to go long in the pair. The level of 1.34000 may work as a level of resistance.

Considering the H1 chart, it looks slightly bearish biased. However, the H4 chart looks good for the buyers. Thus, the pair may get bullish today. However, a breakout at the key support may change the whole scenario.

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

Contact and follow Tareq on Twitter: @tareqfpn