USD/CAD might be finished with its downtrend, because the pair is forming a double backside sample.
Can the pair bust via its neckline resistance quickly and go on a reversal?
Right here’s what we’re seeing on the 4-hour chart.
USD/CAD 4-hour Foreign exchange Chart by TradingView
After making a few failed makes an attempt at breaking beneath the 1.3550 minor psychological mark, USD/CAD is now again to testing the double backside neckline at R1 (1.3770).
By the appears to be like of it, the Dollar continues to be reigning supreme whereas it rakes in safe-haven flows from elevated world commerce uncertainty whereas disregarding dovish Fed expectations.
Will we see sustained upside momentum set off a break above the resistance?
Do not forget that directional biases and volatility situations in market value are usually pushed by fundamentals. If you happen to haven’t but finished your fundie homework on the Canadian greenback and the U.S. greenback, then it’s time to take a look at the financial calendar and keep up to date on day by day elementary information!
The 100 SMA is beneath the 200 SMA for now, however the tightly narrowing hole between the technical indicators recommend {that a} bullish crossover could also be so as.
In that case, look out for a bounce off the pivot level degree (1.3720) that might propel USD/CAD previous the neckline resistance and onto a rally in the direction of the subsequent upside targets at R2 (1.3830) then R3 (1.3880).
Alternatively, sellers defending the 1.3800 main psychological barrier may drive the pair to retreat again to close by help zones at S1 (1.3670) across the transferring averages then S2 (1.3620).
Whichever bias you find yourself buying and selling, don’t neglect to observe correct danger administration and keep conscious of top-tier catalysts that might affect general market sentiment.
Disclaimer:
Please bear in mind that the technical evaluation content material supplied herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one facet of a complete buying and selling technique. The technical setups mentioned are meant to focus on potential areas of curiosity that different merchants could also be observing. In the end, all buying and selling selections, danger administration methods, and their ensuing outcomes are the only duty of every particular person dealer. Please commerce responsibly.
