- USD/CAD trades above Simple Moving Average 30.
- The H4 chart produced a double bottom.
- The H1 chart looks bullish to make a new higher high.
- Intraday minor charts have been bullish.
USD/CAD- Technical Analysis- H4 Chart
The H4 chart shows that the chart produced a double bottom and headed towards the North. On its way, it made a bullish breakout at simple moving average 30 and traded above the level for several candles. It then came down and made a bearish correction. Upon finding its support around 1.34400, the pair made a move towards the North again. However, it consolidated around a resistance for a while, then found its support at the SMA 30 again. At the last bounce, it produced a bullish inside bar. Since then it has been heading towards the North with good bullish momentum. The price may find its next resistance around 1.35230.
A bullish breakout at that level may push the price towards the North further. In that case, the pair may keep making new higher highs and stay bullish for some days.
Price Action Analysis- H1 Chart
The chart shows that the price has been moving towards the North gradually. It may find its resistance soon at 1.35240. A breakout above that level may generate bullish momentum and push the price towards the North. The price may find its resistance around 1.35700.
On the contrary, if the level works as resistance and produces a bearish reversal pattern such as double top, then the sellers may look to go short from the value areas. The price may find its support around 1.33800.
The H4 chart favors the buyers. The H1 chart looks good for the buyers, but it may get bearish if the last swing high works as a resistance. In a nutshell, traders may keep their eyes on the pair for trading opportunities since it looks that the pair may make some good move either way.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn