USDCAD: Moving with Momentum

[sharabela]

USDCAD had a bounce at 1.28400 and made a strong bullish move in the H4 chart. The pair had a bounce around the level earlier, thus the buyers may consider it as a Double Bottom support. The chart produced consecutive bullish candles and later found its resistance around 1.30800. It had its bearish correction with two bearish candles and found its support at 1.30190 area, where it produced a bullish engulfing candle. Thus, the buyers may go long in the pair and push the price towards the North further. The level of 1.30800 looks to be a strong level of resistance, but the way the price made its move towards the North in the H4 chart, it may end up making a breakout there. The price may find its next resistance around 1.32250.

On the other hand, if the level of 1.30800 produces a bearish reversal candle and makes a bearish breakout at 1.30190 area, the bear may head towards the South with a moderate pace and find its support around 1.29350.

 

[sharabela]

USDCAD gets caught within a horizontal range in the H4 chart. The pair looked good to go towards the North last week. However, the price did not make any bullish breakout but had a rejection at 1.30800. The level of 1.29350 has been working as a level of support, where the price had a bounce. This is not an ideal chart to look for trading opportunities. However, traders may keep their eyes on the chart for the next breakout.

A bearish breakout at 1.29350 may drive the price towards the South. The price may find its next support around 1.28500.

On the other hand, if the price makes a bullish breakout at 1.30800, the pair may continue its bullish move and find its next resistance around 1.32300.

Considering these two charts, the bull has more space to travel towards the North. However, the resistance level looks very strong. Thus, the bear seems to have an upper hand here. Let us wait and watch what happens next.

 

[sharabela]

USDCAD produced a bearish ABC pattern in the H4 chart. The price found its C point at 1.29850 and it has been very bearish. It may find its support around 1.28430. The H4 chart shows that the price reacted at the level several times. Thus, traders are to be very watchful at the price action around the level. A bullish reversal pattern may push the price towards the North. The price may find its resistance around 1.29450 in case of a price reversal.

On the other hand, if the price makes a bearish breakout, the sellers may go short in the pair upon breakout confirmation. The price may continue its bearish move and find its next support around 1.27300.

Considering the risk-reward, it seems that the Bear has more space to travel towards the South. Thus, the sellers may end up having a bearish breakout here. Let us wait and watch what happens next.

 

[sharabela]

USDCAD found its support at 1.28200 and bounced at the level twice. At the last bounce, the pair produced a bullish engulfing candle. However, it did not head towards the North. It rather found its resistance at 1.29000 and produced consecutive bearish candles. If the price finds its support before 1.28200 and produces a strong bullish reversal candle, it may still head towards the North. However, as things stand with the pair, it seems the price may come back at 1.28200 area again. If the H4 chart produces another bullish engulfing candle and the price makes a breakout at 1.29000, the buyers may push the price towards the North and find resistance around 1.29450.

A bearish breakout at 1.28200, on the other hand, may drive the price towards the South. The price may find its next support around 1.27350.

Considering both charts, it seems the Bear may end up making a breakout here. Let us wait and what happens next.

 

[sharabela]

USDCAD found its support at 1.27800 and made a move towards the North. The price had a rejection at 1.28870 and produced a bearish engulfing candle. Thus, the price may continue moving towards the South to find its support. It had a strong bounce at 1.28350 earlier. Thus, the level may hold the price as a level of support. If it produces a bullish reversal candle and ends up making a bullish breakout at 1.28870, the buyers may go long in the pair and push the price towards the North further. The price may find its next resistance around 1.29450.

On the other hand, if the price makes a bearish breakout at 1.28350, the sellers may drive the price towards the South. The price may find its next support around 1.27800 again.

Considering the chart, it seems that the Bull has an upper hand here. There is no point of guessing though. Let us wait and see which way the price makes its next breakout.

 

[sharabela]

USDCAD made a bearish move and found its support around 1.28400 in the H4 chart. The price has been having a bullish correction. As of writing, the price is within a range in the H4 chart. If the price makes a bullish breakout at the resistance, the correction may continue and find its resistance around 1.29450.

If we consider bigger picture, the pair may continue its bearish move if it makes a bearish breakout around 1.28400. The level of 1.27800 may hold the price as a level of support. However, overall price action suggests that the price may continue its bearish move and make a new lower low.

The bear seems to have an upper hand. However, the level of support still holds the price. It means traders may have to be patient with the pair to find its next trend.

 

[sharabela]

USDCAD made a good bearish move in the H4 chart. The price consolidated around 1.29250 and headed towards the South upon making a breakout at consolidation support. The level of 1.28330 seems to be working as a level of support. If the price makes a bearish breakout, the pair may continue its bearish move and find its next support around 1.27500.

On the other hand, if the level holds the price as a level of support and produces a bullish engulfing candle, the buyers may keep their eyes on the pair to go long in the pair. The price may find its next resistance around 1.29800.

Considering the chart, the Bull has more space to make its move. However, price action suggests that we may see the Bear wins the race here. Let us now patiently wait for the price to make its move and show us its next direction.

 

[sharabela]

USDCAD made an interesting bearish move in the H4 chart. The price was heading towards the North by obeying an up trending trend line. It made a bearish breakout yesterday. The pair is traded below the trend line. The price has been having a bullish correction around the resistance of that trend line. The sellers may keep their eyes on the pair to go short upon having a bearish reversal candle. The price may find its next support around 1.29000.

On the other hand, if the price keeps heading the bullish correction and goes inside the trend line, the buyers may wait for the price to make a bullish breakout at the last swing high to go long in the pair. It means the buyers are to wait longer to go long in the pair as far as the H4 chart is concerned. In case of a bullish breakout at the last swing high, the price may find its next resistance around 1.31650.

 

[sharabela]

USDCAD has been up trending in the H4 chart. The price has been obeying an up trending trendline. The price seems to have found its support at the trendline several times. It produced a Double Bottom and made a strong bullish move. Upon producing an ABC pattern, it moved towards the North again this week. The price has been having a bearish correction. If it finds its support and produces a bullish reversal candle closing above the last higher high, the buyers may push the price towards the North again. The pair may find its next resistance around 1.32250.

For the sellers, they must wait for the price to make a bearish breakout at the trendline before making any selling decisions. As things stand with the pair in the H4 chart, it may take time to offer short entries to the seller.

 

[sharabela]

USDCAD produced a Double Bottom in the H4 chart at 1.31000 and made a bullish move. The pair is traded around 1.32000. It is a very significant level since the price had a rejection at the level earlier. If the level works as a level of resistance and produces a bearish reversal candle, the sellers may keep their eyes in the pair to go short. The pair may find its next support around 1.31000. A bearish breakout at that level may drive the price towards the South further. However, the buyers may keep their eyes on that level too to go long upon having a bullish reversal pattern at 1.310000.

On the other hand, if the price makes an H4 breakout at the level of 1.32000, the buyers may go long in the pair upon having breakout confirmation. The pair may find its next resistance around 1.33500.

Let us wait and watch what the price does next.

 

[sharabela]

As expected, USDCAD made a good bearish move from the resistance level that we marked in our last week’s analysis. The pair found its support at 1.29600 and made a very strong bullish move. As of writing, the pair is traded around 1.31900. It has become a stronger resistance. However, if we consider the last bullish move, it suggests that the price may end up making a bullish breakout here. The price may consolidate around the level of resistance. If a candle breaches the level, the buyers may go long upon breakout confirmation at 1.31900/1.32000. The price may find its next resistance around 1.33500.

On the other hand, if the price continues its bearish move, the sellers may find some short opportunities in the minor frames. The price may find its next support around 1.30500.

It is going to be an interesting battle here. This time the Bull looks very promising.

 

[sharabela]

USDCAD has been bullish in the H4 chart. The price has been moving towards the North by obeying an up trending trend line. The buyers may wait for the price to make a bearish correction and produce a bullish reversal at the trend line’s support. The H4 chart shows that the price has enough space to move towards the North. Thus, it may attract more buyers to go long in the pair and push the price towards the upside with good bullish momentum. The price may find its next resistance around 1.35700.

On the other hand, the sellers must be patient. They may want to wait for the price to make an explicit bearish breakout at the trend line to find short opportunities. As things stand with the pair, it is less likely to happen.

Considering both charts, it seems the Bull may dominate in the pair for some days.

 

[sharabela]

USDCAD made a strong bullish move in the H4 chart. In our last analysis, we saw that a bullish trend line pushed the price towards the North. The trend line still holds the price as a support. However, the price had a rejection at 1.38000. If the price gets rejected again at the same level and it makes a bearish breakout at the level of 1.36400, it may drive the price towards the South. The chart shows that there is enough space for the price to travel towards the downside. Thus, it may attract the sellers to go short and create good bearish momentum. The price may find its support around 1.32800.

On the other hand, if the price makes a bullish breakout at 1.38000. It would be considered as “Cup and Handle” by the buyers. A bullish breakout followed by breakout confirmation and a bullish reversal candle may push the price towards the North further. The price may find its next resistance around 1.43250.

 

[sharabela]

USDCAD is traded within a triangle in the H4 chart. The price had several rejections at 1.28450. At the last rejection, it made a good bearish move, but moved towards the North by obeying an up trending trend line. If the price gets bearish and makes a breakout at the trend line, the sellers may go short in the pair and drive the price towards the South with good momentum. The H4 chart shows that there is enough space for the price to travel towards the downside. It may attract more sellers to go short in the pair. The price may find its next support around 1.32000.

On the contrary, if it makes a bullish breakout at the horizontal resistance, the buyers may push the price towards the North. The price may find its next resistance around 1.41000.

Considering the chart, the Bear has more space to move, but the Bull has some advantages too. Let us wait and watch who wins here. One thing for sure, USDCAD is going to be on the traders’ watch list this week.

 

[sharabela]

USDCAD made a bearish move followed by a bullish correction. The price had rejection twice at a down trending trend line. At the second rejection, it did not produce any bearish momentum. In fact, the pair is traded around that trend line. If the trend line produces a bearish reversal candle, the sellers may look to go short in the pair and drive the price towards the South. The H4 chart shows that there is enough space for the price to travel towards the downside. It may find its next support around 1.35000.

On the other hand, if the price makes a bullish breakout at the trend line, the buyers may wait for the price to consolidate around the breakout level followed by a bullish reversal candle to go long in the pair. The price may find its next resistance around 1.38500 in case of a bullish breakout.

Considering both charts, it seems that the Bear has an upper hand here. Let us wait and watch what the price does next around the trend line.

 

[sharabela]

USDCAD was bearish by obeying a bearish trend line last week. The price did not obey the trend line but moved towards the North to extend its bullish correction. It then found its resistance and made a strong bearish move. The H4 chart shows that another bearish trend line can be drawn, which has been driving the price towards the South with good bearish momentum. The price consolidated and made another bearish breakout at horizontal support 1.36000. This breakout may attract more sellers to go short in the pair. The pair may find its next support around 1.35000.

The buyers on the other hand must wait for the price to produce a strong bullish reversal pattern to be able to find some long opportunities that justify risk-reward. A breakout below the level of 1.35000 may make them wait longer.

Considering the H4 chart, it seems that the Bear may dominate in the pair for some days.

 

[HeavenLeighGill]

Interesting, I'm definitely going to be keeping my eye on this one and watching for that reversal pattern.

 

[sharabela]

• Keep an eye at horizontal support 1.35300
• The bearish trend line gets stronger

In our last analysis, we saw that USDCAD made a bearish move by producing a trend line last week. The price had rejection twice at two points that can be used to draw the trend line with some adjustments. This means the sellers may be more interested to go short in the pair. However, the horizontal level of support at 1.35300 looks very strong as well. The price reacted at that level several times. It had a bounce yesterday again, which shows the strength of that level. Thus, the sellers may wait for the price to make a bearish breakout at 1.35300 to go short in the pair. The price may find its next support around 1.33500.

On the other hand, if the price makes a bullish breakout at the trend line, the buyers may keep their eyes in the pair to go long upon having breakout confirmation followed by a bullish reversal candle. In case of bullish breakout, the price may find its next resistance around 1.38500.

 

[Fried_Rice]

Coming down for another tap at that support. With each one it gets weaker

 

[sharabela]

# Support level 1.35300 got breached by the price.

# The level of 1.31500 may work as the next support.

USDCAD made a very significant bearish breakout at 1.35300. As of writing, the pair is traded below the level. Thus, the sellers may keep their eyes in the pair to go short. The price seems to be having a bullish correction. It may find its resistance at the breakout level. If the level produces a bearish reversal pattern, the sellers may take the opportunity and drive the price towards the South further. The pair may find its next support around 1.31500.

On the other hand, if the price breaches the breakout level and trades above it, it may get choppy for a while before finding its next direction.

Considering the chart, it does not seem that the Bull comes into the action soon. The pair most probably is going to be dominated by the Bear for a while.