- USD/CAD is having a bearish correction on the H4 chart.
- The level of 1.35000 may play a vital role.
- The H1 chart seems bearish upon producing a double top.
- Intraday minor charts have been bearish.
USD/CAD -Technical Analysis- H4 Chart
The chart shows that after being very bullish, it had a rejection at 1.35400. It produced a bearish engulfing candle. It suggests that the pair may make a bearish correction. The level of 1.35000 may hold the price as a support. The buyers are going to keep their eyes on the price action around that level. A bullish reversal candle may push the price towards the North and end up making a new high.
On the contrary, if the chart breaches 1.35000, it may continue its bearish correction. In that case, 1.34350 may hold the price as a support.
Price Action Analysis- H1 Chart
The chart shows that the price produced a double top at 1.35430. It has made a breakout at the neckline as well. Thus, the sellers are going to be very keen to go short in the pair based on this chart. The chart also suggests that there is enough space for the price to travel towards the downside. It is going to be another reason that more sellers will be interested to take short entries. The price may find its first support around 1.34450. A breakout below the level may generate more bearish momentum. In that case, it may find its support around 1.33650.
On the contrary, it does not look that good for the buyers yet. The double top factor may not attract the buyers to look for buying opportunities until it makes a breakout at the higher high.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn