USDCAD Market Order Flow Remains Bullish

USDCAD Analysis – August 3

USDCAD market order flow remains bullish. The daily timeframe chart appears bullish due to the higher highs and higher lows in formation. The bullish order flow began on the 1st of June, 2021. Till August 20th, 2021, the upward movement of prices was so steep, indicating the high momentum of the market uptrend.

USDCAD Major Levels

Resistance levels: 1.2950, 1.3660
Support levels: 1.2520, 1.2030

USDCAD Long-term Trend: Bullish

The market had been very bullish until the resistance at 1.2950 was hit on the 20th of August. Due to the low momentum of the increase in long positions, the resistance at 1.2950 has lasted for almost a year. The market has been struggling to break through this resistance upward. Currently, there appears to be a bearish divergence on the daily timeframe as the price chart and the Stochastic RSI showed higher highs and lower lows, respectively. This indicates that the prices might trend down for a while before resuming their trend upward.

The support at 1.2520 has also proven to be very significant and repulsive because of the market reactions at 1.2520. The positive gradient trendline on the daily timeframe also indicates that the market is currently in an uptrend. In all the efforts by the bulls to drive the market upward, prices have been partially ranging between the two major levels: 1.2950 and 1.2520. For a long time now, there hasn’t been any successful breakout at the resistance 1.2950. All efforts by the bulls to make prices rally beyond the resistance have proven abortive with fake-outs.

USDCAD Short-term Trend: Bullish

In the four-hour timeframe, the market is expected to resume its trend in an upward direction immediately after hitting the 0.618 retracement level, which is a few pips below the equal lows.

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