USDCAD Finds Bullish Reinforcement at the 1.23000 Support Level

USDCAD Price Analysis – October 27

USDCAD finds bullish reinforcement at the 1.23000 support level after several days of market dumping. On the 1st of October, the price fell below its uptrend line and, simultaneously, the EMA period 20 (Exponential Moving Average). USDCAD has been in a downtrend since then and interventions at 1.25790 and 1.24700 were not strong enough to resist the market’s fall. Eventually falling to 1.23000, bullish reinforcement is being employed to force a market reversal.

USDCAD Key Levels

Resistance Levels: 1.28300, 1.26500
Support Levels: 1.24700, 1.23000

USDCAD Long Term Trend: Bullish

USDCAD has been swaying upwards until it finds impenetrable resistance at 1.28300. The resistance level helps to bring the market’s consistent higher highs to a halt. But with the price still moving in an uptrend, bearish momentum was being stored. On the 7th of September, buyers attempted to force through the 1.28300 resistance. This they did by forging the market into a symmetric triangle. When the price broke out, it dashed against the price level but still finds greater resistance.

Thereafter, USDCAD begins to dwindle in its impetus to climb up. After a while, sellers seized and plunged the market below the trendline and the EMA period 20. USDCAD kept dropping till it finds strong bullish reinforcement at 1.23000. The market has now started its process of reversal. The first test is to break upward of the EMA period 20. The market is well on its way to doing this as the EFI (Elders Force Index) power line is approaching the zero level from a negative value.

USDCAD Short Term Trend: Bullish

On the 4-hour chart, the market has taken a round-bottom reversal. The EMA period 20 has gradually switched from above the market to below the market, acting as support for the price and pushing it upward. The EFI remains essential at the equilibrium level but with a little bias towards the positive value. This shows that bulls are gradually gaining ground in the market.
The newfound reinforcement should help the buyers above the 1.24700 price level.

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