USDCAD Remains Bullish Despite Dropping From an Ascending Channel

USDCAD Price Analysis – September 22

USDCAD remains bullish despite its setback in sliding out of its previous ascending channel. The market suffered a setback when it attempted to cross the middle line of the ascending channel, which appeared to intersect with the 1.28000 key level. This posed too strong a resistance zone for USDCAD, and as a result, price fell to the channel’s lower border and eventually out of it.

USDCAD Critical Levels

Resistance Levels: 1.28000, 1.28800, 1.30330
Support Levels: 1.26500, 1.24700, 1.20300

USDCAD Long Term Trend: Bullish

USDCAD is still bullish, as it was when the price fell to 1.20300. Bulls immediately got to work and, after several weeks of ranging between the 1.21500 and the 1.20300 key levels, the market surged out of accumulation. The price rose to 1.24700, and despite a retracement, the market remained in the upper half of the ascending channel. Later on, a failed attempt to break out of the channel led to a plunge into the lower half of the channel.

After a few days of the gradual movement, another failed attempt to jump into the upper half of the ascending channel led to its drop out of the channel altogether. However, it is down but not out for USDCAD, which bounced up a trend line to find support at 1.26500. From this level, the market has been pushing to test the resistance levels above it. The Moving Average Convergence Divergence is certainly displaying the bullish vigor of the market with an upward cross of its line above the zero level.

USDCAD Short Term Trend: Bearish

On the 4-hour chart, the market is seen to have tapered down into a descending triangle and broken out to the upside, where it has gone past 1.28000 to test 1.28800. Though price was rejected, it remains around the 1.28000 key level where it is now forming into another triangle pattern to push price up. The EMA period 20 (Exponential Moving Average) remains below the 4-hour candles as support and we could see a price breakout towards 1.30330.

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