USD/CAD Bullish Reversal?

USD/CAD Bullish Reversal?

USD/CAD moves sideways in the short term waiting for a bullish spark to be able to develop a new leg higher. Technically, the pair has shown oversold signs, but it is still premature to go long from here.

The US needs strong support from the US economy to start increasing versus its rivals. The US ISM Services PMI, Unemployment Claims, and the ADP Non-Farm Employment Change could shake the markets today. Also, don’t forget that the US is to release the NFP, Unemployment Rate, and the Average Hourly Earnings tomorrow.

Better than expected data could boost the DXY and could lift the greenback in the short term.

USD/CAD H4 Technical Analysis

USD/CAD is trapped between the weekly pivot point (1.2079) and the S1 (1.2017) levels. Its false breakdown with great separation below the S1 signaled a potential growth.

Still, we have to wait for a valid breakout above the weekly pivot point (1.2079) and for the price to make a new higher high before taking action. The price action has developed several falling wedge patterns here in the short term, signaling a potential reversal.

Conclusion!

USD/CAD has shown oversold signs after registering a sharp drop. The USD could take the lead if the US data comes in better than expected.

Join Our VIP Group For TP2 HERE

 

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.