USDCAD Analysis

USDCAD revives and climbs back above the 1.26500 price level. The market has been making a steady movement upward since it dropped to 1.23000. Price has employed a retest and break strategy to move it clear of multiple key levels. The major opposition to the upside movement of the market is found at 1.25790. Price pulls back to 1.24700 support before pushing past the significant level.

USDCAD Important Levels

Resistance Levels: 1.28300, 1.26500, 1.25790 Support Levels: 1.24700, 1.23000, 1.20300

USDCAD Long Term Trend: Bullish

USDCAD revives to continue its bullish campaign which began at the 1.20300 level from mid-May to mid-June. A major characteristic of price upward movement is that it retraces and surges past a significant level. This is the movement pattern of USDCAD to ascend above the 1.26500 significant level. However, the momentum of the market wasn’t enough to get it past the 1.28300 resistance, but price agitation can be seen as long wicks pierce through the resistance. Bears enter to influence the market at this point, and eventually, the price drops to undo all its previous progress. However, USDCAD revives above the 1.23000 price level, which is a higher low as the bullish campaign continues. The MA period 20 (Moving Average) is acting as support for the market. The pattern of upward drive can be seen on the signal line of the RSI (Relative Strength Index).

USDCAD Short Term Trend: Bullish

Currently, the price has pulled back to 1.26500, as it has been consistent with it throughout its climb. The MA period 20 continues to be a strong market support on the 4-hour chart. However, the RSI signal line has been affected by the retracement in the market as it drops to the 50 mark. On the other hand, the bulls will most likely return to continue their campaign to 1.28300.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.