USDCAD rejects a slump below the 1.24700 key level and has surged back into its triangle pattern. The bears were assumed to have seized power when the market broke beyond the lower border of the triangle pattern. The price then bounced off 1.24700 for a retest at the upper border before a further drop. But the support level completely rejects the market on the second encounter, and the market recoils back to the triangle pattern.
USDCAD Important Levels
Resistance Levels: 1.30330, 1.28300 Support Levels: 1.26500, 1.24700
USDCAD Long Term Trend: Bullish
The USDCAD market is set to break out after a long-drawn period of tapering through a triangle pattern. The upper border of the triangle is under a lot of pressure, with repeated touches registered on it. But surprisingly, it was to the downside that the market dropped. However, this breakout is accounted as false after the market rejects further downward movements at the 1.24700 support.
Therefore, the market has recoiled back into the formation with consecutive bullish candlesticks. The RSI (Relative Strength Index) line has recovered above the zero level and is approaching overbought. Also, the Parabolic SAR (Stop and Reverse) has switched its dots below the daily candles. The price is set to launch an assault immediately on the upper border of the formation.
USDCAD Short Term Trend: Bullish
On the 4-hour chart, the market is still bullish, having surged back into the triangle formation. The price then retraced and bounced from the lower border of the triangle. After that, USDCAD is not confronting the 1.28300 resistance level. The Parabolic SAR still supports bullishness, but the RSI line is now fluctuating around the overbought border. USDCAD will look to break beyond the upper border of the triangle to 1.30330.
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