Market NewsTechnical Analysis

USD/CAD: The Price Gets Caught within a Rising Wedge

  • The pair trades around a massive resistance in the H4 chart
  • Simple Moving Average 30 has been working as a support
  • The H1 chart produces a Rising Wedge Pattern
  • Traders are to keep an eye on the next breakout
USD/CAD H4 Chart
USD/CAD H4 Chart

USD/CAD H4 Chart Finds a Massive Resistance

The pair has been up trending for some days. It had a rejection at 1.35000 last week and made a bearish correction. Simple Moving Average 30 has worked as a support and pushed the price towards the North. As of writing, the pair trades around that massive round number 1.35000. Thus, the pair has been sluggish for the last two H4 candles. The buyers may wait for the price to make a bullish breakout at the resistance and go long upon having breakout confirmation. The price may find its next resistance around 1.36350.

On the downside, if the price makes a breakout at Simple Moving Average 30, the price may head towards the South and remain bearish for a while. The pair may find its next support around 1.32500.

USD/CAD H1 Chart
USD/CAD H1 Chart

The H1 Chart Trades within a Rising Wedge

The H1 chart shows that the price has been up trending by obeying a bullish trend line. It had several bounces, so both the sellers and buyers are going to keep their eyes on the price action around the trend line. A bearish breakout below may attract the sellers to go short in the pair. The price may find its next support around 1.33750.

On the other hand, if the price makes a bullish breakout at the horizontal resistance, the pair may head towards the North and find its next resistance around 1.35800.

Considering both charts, the pair has is undeceive as of writing. The next breakout is going to determine its direction. Definitely, it is going to be a pair to keep an eye on for both the buyers and sellers. Let us wait and watch which way it makes its next breakout.

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

Contact and follow Tareq on Twitter: @tareqfpn

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