Market NewsTechnical Analysis

USD/CAD: H1 Support is in Play

USD/CAD Economic Indicators BoC
  • USD/CAD has found a horizontal resistance at 1.35280.
  • The SMA 30 has been working as a support on the H4 chart.
  • The H1 chart has been choppy around a support for a while.
  • Intraday minor charts have been choppy.
USD/CAD H4 Chart
USD/CAD H4 Chart

USD/CAD -Technical Analysis- H4 Chart

The chart shows that the price made a bullish move and breached the simple moving average 30. It traded above the moving average for a while. However, the level of 1.35280 has been working as a resistance, where it had a rejection. As of writing, the pair trades around right at the support of the SMA 30. It means the buyers are to wait for the chart to make a bullish move followed by a breakout at the horizontal resistance. In that case, the price may find its next resistance around 1.35850.

On the downside, if the price breaches the SMA 30, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern at the value areas to go short in the pair. In case of a bearish breakout, it may find its support around 1.34500.

USD/CAD H1 Chart
USD/CAD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been consolidating around 1.35000. It has been a significant level, where the price reacted several times. Notably, it is a round number as well. Thus, traders will be eyeing on the price action around this level to find its next direction.

A bullish reversal pay push the price towards the swing high. On the contrary, a bearish breakout may drive it towards the level of 1.34630. Considering the risk-reward on these two cases, it seems that a bearish breakout offers better risk-reward.

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

Contact and follow Tareq on Twitter: @tareqfpn

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Fidelcrest video review

Play Video

Related Articles

Gold Near New High: Israeli-Iran Conflict Sparks Rally

Gold prices surged on news of an Israeli attack on Iran, nearing...

Global Markets on Edge: Japan’s CPI and Geopolitical Tensions

Japan's National Core CPI rose 2.6% YoY, slightly below forecasts, influencing global...

Asia Watch: Dollar Rally, Geopolitical Tensions Impact Trading Sentiment

Amid lower US unemployment claims, the dollar surged while escalating geopolitical tensions...

Market Focus: Europe and Asia React to Economic Data

In Asia, the Australian labor report weakened the AUD; USD awaits US...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Gold Near New High
Market News

Gold Near New High: Israeli-Iran Conflict Sparks Rally

Gold prices surged on news of an Israeli attack on Iran, nearing an all-time high, while FX markets reflected immediate safety concerns.

Global markets CPI geopolitical tensions
Market News

Global Markets on Edge: Japan’s CPI and Geopolitical Tensions

Japan's National Core CPI rose 2.6% YoY, slightly below forecasts, influencing global markets amid rising geopolitical tensions and central bank actions.

Copyright © 2023 Forex Prop News. All Rights Reserved.