USDCAD Buyers Await a Re-entry Level at the Discount Array

USDCAD Analysis – November 2

USDCAD buyers await a re-entry level at the discount array on the daily chart. The market’s outlook is bullish. The bullishness could be traced back to prices’ reaction to the daily bullish order zone created in the range market in April.

USDCAD Significant Zones

Demand Zones: 1.3220, 1.2400
Supply Zones: 1.3590, 1.3970

USDCAD Long-term Trend: Bullish

Though the market began its uptrend in June 2022, the market’s momentum wasn’t compelling enough to the USDCAD buyers until the previous resistance at 1.3220 was invalidated. Before the beginning of the uptrend, the market had been ranging for months. Though there were some fake-outs, the upper boundary of this range was conserved until September 2022. This incident let the market enter an overbought region for the first time in the year, as revealed by the Relative Strength Index (RSI) indicator.

On April 21st, 2022, the price was delivered upward with an inside bar candlestick; a bullish order zone was created in this process. The bullish order zone signified the presence of the bulls as prices pulled back into the discount array to get their orders filled on the 8th of June, 2022.

Price began to make a new impulse wave at 1.25180 on the 8th of June, 2022, after filling the buy orders in the bullish order zone. The impulse wave ended its course after striking the previous resistance at 1.3220. The USDCAD buyers were impatient enough to wait for the price to pull back into the discount zone as they drove the price aggressively upward. The momentum was very energetic at this point until the price hit the 1.3590 resistance. The market is currently distributing at the supply zone, which also corresponds with the –100% retracement level.

USDCAD Short-term Trend: Bearish

The market appears bearish on the four-hour chart. Should the equal-low get invalidated, USDCAD buyers are expected to remain inactive until the price enters the daily bullish order zone.

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