USDCAD is set to make a strong push to break out of its triangular confinement. The price is now getting to the tip of the triangle formation and the market is due to decide on its direction of movement. The bears had hijacked the market by breaking downward, but buyers padded the price to redirect it back upwards. Having been rejected again at the upper border, USDCAD is set to make a strong upward push when it touches the lower border.
USDCAD Key Zones
Resistance Levels: 1.31810, 1.30330, 1.28980 Support Levels: 1.26500, 1.23000, 1.20300
USDCAD Long Term Trend: Bullish
The wavy movement of the market along the ascending triangle is pretty obvious from last year into this year. The nature of the triangle (ascending) already gives a bias to the potential direction of the market, which is bullish. Therefore, a consistent market high is accompanied by consistent higher lows. This continues up until mid-march when sellers slipped the price below the triangle.
The outbreak by the sellers resulted in a fake breakout because the situation was dealt with adequately and the price returned to the triangle. The market reaches for the upper border and is rejected once again. As such, USDCAD is ready for a strong upward drive from the lower border of the ascending triangle.
USDCAD Short Term Trend: Bearish
The 4-hour chart shows that the price is now on descent after hitting the upper border at 1.28980. The market is currently in a general uptrend and will have to drop to the lower portion of its parallel channel to break the upper border with momentum towards 1.31810. The MA Cross is set to confirm downward movements while the Stochastic Oscillator has plunged to the oversold region of the chart.
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