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USD/CAD: Will it make a breakout in the daily chart?

EagleFX

USD/CAD has been in consolidation for the last few days. The price seems to have found its support. However, yesterday’s candle came out as a bullish inside bar. Since the pair has been bearish in the daily chart for a long time. Thus, a bearish breakout at consolidation support may drive the price towards the South. Intraday price action suggests that the pair may make a bearish move. If the bearish move ends up making a breakout and today’s candle closes below consolidation support, the pair may resume its bearish move. Let us have a look at three vital charts.

Chart 1 USD/CAD Daily Chart


The chart shows that the price made a long bearish move in the daily chart. It consolidated around the level of 1.30450 for the last few days. However, the level produced a bullish inside bar. It suggests that the price may get bearish in the intraday charts. If that happens, the price may breach the level of 1.30450. A breakout at the level may attract the sellers to go short in the pair aggressively. The price may find its next support around 1.28000. On the contrary, if the price heads towards the North and makes a breakout at the level of 1.31600, the price may find its next resistance around 1.33000.

Chart 2 USD/CAD H4 Chart


The chart shows that the price had a rejection at the level of 1.31200 once. It then moved towards the level again. As of writing, the price has been bearish in the current H4 candle. If it ends up being a bearish reversal candle, a breakout at the level of 1.30700 may drive the price towards the level of 1.30250. A bullish breakout at the level of 1.31200 may push the price towards the level of 1.31600.

Chart 3 USD/CAD H1 Chart


The chart shows that the price had a rejection at the level of 1.31175 and produced a bearish engulfing candle. It has been driving the price towards the South. If the price makes a breakout at the level of 1.30900, the price may head towards the downside with good bearish momentum. It may find its next support around 1.30450. If the level of 1.30900 works as a level of support and produces a bullish reversal candle, the price may get choppy within the level of 1.30900-1.31175.

The daily chart looks slightly bearish biased. However, the H4 and the H1 chart look very good for the Bear. Thus, the pair may produce a bearish candle in the daily chart today. The daily traders would have to wait to find out whether the candle closes below consolidation support or not.

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