Market NewsTechnical Analysis

USD/CAD: Bull Runs with Momentum

USD/CAD Economic Indicators BoC
  • USD/CAD has been heading towards the North with good momentum.
  • The pair found its support at the SMA 30.
  • 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 found its support at 1.33500 and produced a morning star. A bullish engulfing candle breached the SMA 30’s resistance and traded above for a while. Upon producing a hammer around the SMA 30, the pair has headed towards the upside. As of writing, the price has been very bullish. It may find its next resistance around 1.35500.

On the downside, the sellers may not find short opportunities soon with lucrative risk-reward. The chart is to produce a strong bearish reversal pattern such as double top to go short in the pair.

USD/CAD H1 Chart
USD/CAD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price upon producing a double bottom made a strong bullish move. It then consolidated and made a bearish correction. At the flipped support, it made another bullish move and found its resistance around 1.34500. Upon having a correction, it found its support and produced a bullish engulfing candle before making another move. Those two lines can be added to draw a trend line.

The price action suggests that the buyers may keep their eyes to go long from the value areas.

On the downside, if the price produces a bearish reversal pattern followed by a breakout at the trend line, the sellers may find short opportunities. As things stand with the pair, it may take time. Thus, sellers must be patient with the pair for a while.

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

Contact and follow Tareq on Twitter: @tareqfpn

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