Market NewsTechnical Analysis

USD/CAD: May Remain Choppy for a While

USD/CAD Economic Indicators BoC
  • USD/CAD has found a horizontal support having its second bounce.
  • The SMA 30 has been working as a resistance.
  • The H1 chart has been on a bullish correction.
  • Intraday minor charts have been bearish.
USD/CAD H4 Chart
USD/CAD H4 Chart

USD/CAD -Technical Analysis- H4 Chart

The chart shows that the price had its second bounce at 1.34300. At the second bounce, it produced a bullish inside bar. As of writing, the price seems to be heading towards the North. The simple moving average 30 still works as a resistance. A bearish reversal signal may attract the sellers to go short below the horizontal support. However, since the level made the price bounce twice, thus, it may end up making a bullish breakout at the SMA 30. If that happens, the pair may get bullish and head towards the North. The price may find its resistance at the swing high.

On the contrary, if the price breaches the level of 1.34300, it may head towards the South and find its support around 1.33650.

USD/CAD H1 Chart
USD/CAD H1 Chart

Price Action Analysis- H1 Chart

The level of 1.34300 looks strong support, which produced a morning star at the second bounce on the H1 chart. The price then consolidated for a while. As of writing, it has been gradually heading towards the North. It may find its resistance around 1.34800.

On the contrary, if the price gets bearish upon producing a bearish reversal pattern at the resistance zone, the sellers may drive the price towards the level of 1.34300 again. A breakout below that level may generate more bearish momentum and drive the price towards the South further.

Considering both charts, it could go either way. However, on both sides the price does not get enough space to travel around. Thus, the pair may move  sluggishly even after a breakout.

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

Contact and follow Tareq on Twitter: @tareqfpn

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