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USD/CAD: Daily Chart Bearish Engulfing Candle Drives Price Down

EagleFX

USD/CAD has been bearish in the daily chart. The chart shows that it produced a bullish engulfing candle on Tuesday. However, yesterday the daily candle came out as a bearish engulfing candle. Thus, the sellers may look to go short in the pair. Two major intraday charts are bearish biased as well. Let us now have a look at three vital charts.

Chart 1 USD/CAD Daily Chart


The chart shows that price had a rejection at 1.37330 and headed towards the South. It produced a doji candle and continued its bearish move. On Tuesday, it produced a bullish engulfing candle. It was produced at double bottom support. However, yesterday’s candle came out as a bearish engulfing candle. Thus, the sellers may go short in the pair below yesterday’s lowest low. The price may find its next support at 1.33550. On the contrary, though yesterday’s candle came out as a bearish engulfing candle, it did not close well below double bottom’s support. If today’s candle comes out as a bullish reversal candle, the buyers may wait for a breakout at 1.37330 to go long in the pair.

Chart 2 USD/CAD H4 Chart


The chart shows that it made a strong bearish move and had a bounce at 1.35300. It made a bullish move and found its resistance around 1.36000. It made a breakout at 1.35300 and produced a spinning top. The pair is trading around the breakout level. A bearish reversal candle followed by a breakout at consolidation support may drive the price towards the South. The price may find its next support around 1.34000. If the price makes a bullish breakout at 1.35300, it may get choppy for a while. Upon finding its support, it may head towards the North later and find its resistance around 1.36000 again.

Chart 3 USD/CAD H1 Chart


The chart shows that the price made a strong bearish move and made a breakout at 1.35270. Upon finding its support, the price made a bullish correction and had a rejection at 1.35270. The sellers may go short and drive the price towards the level of 1.34900. An H1 breakout at 1.34900 may attract more sellers to go short, which may create good bearish momentum. The price may find its resistance around 1.34400 if that breakout takes place.

All these three charts look good for the bear. Thus, the pair may end up producing another bearish daily candle today. The next daily support is not too far, which may make the pair travel towards it at a moderate pace.

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