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USD/CAD: Waiting to find its next direction

EagleFX

USD/CAD has been obeying a bearish trendline. The pair had several rejections at the trendline’s resistance and made new lower lows. However, the pair produced a bullish engulfing candle in the daily chart at a support zone yesterday. Thus, the traders are to be watchful to take entries in the pair. Let us now have a look at three vital charts.

Chart 1 USD/CAD Daily Chart


The chart shows that the price has been bearish by obeying the bearish trendline. It had several rejections and headed towards the South further. The price seems to have found its horizontal support at 1.31300. It produced a bullish engulfing candle. Thus, the buyers in intraday charts may eye on the pair to go long. On the other hand, the sellers may wait for the chart to produce a bearish reversal candle to go short in the pair. The price may find its next support around 1.30600.

Chart 2 USD/CAD H4 Chart


The H4 chart shows that the price upon finding its support produced a bullish engulfing candle. It has been in consolidation. The level of 1.32365 has been working as a level of resistance. If the price makes a bullish breakout, the buyers may push the price towards the level of 1.32750. On the other hand, if the level of resistance produces a bearish reversal candle, the sellers may drive the price towards the level of 1.31300. The H4 chart may play a very significant role in determining the pair’s next direction.

Chart 3 USD/CAD H1 Chart


The chart shows that the price after making a strong bullish move found its resistance around the level of 1.32350. It had rejection at the level twice. At the second rejection, it produced a bearish inside bar. However, the price has been heading towards the level of resistance again. If it makes a bullish breakout, the buyers may push the price towards the North. The price may find its next resistance around 1.32600. On the other hand, if the level produces a bearish reversal candle, the sellers may go short in the pair below the level of 1.32150. The price may find its next support around 1.31850.

The daily chart shows that the price gets trapped within horizontal support and a down-trending trendline’s resistance. A bullish breakout at the trendline will attract the buyers, and a bearish reversal candle at the trendline’s resistance will attract the sellers. Thus, traders may keep their eyes in the pair to find out how it comes in the end. Thus, traders are going to be very keen to watch how the price action goes in the H4 and the H1 chart today.

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