USDCAD sellers have counteracted to hinder the market and subsume it below the 1.28980 critical level. The sellers were first circumvented when they drilled below the lower border of the current triangle system on the 22nd of March. After the breakout, the currency pair pulled back for a double retest back to the lower border. The bearish setup was falsified and the price was pulled in at the second retest. Sellers are set to retaliate for this action.
USDCAD Key Levels
Resistance Levels: 1.31810, 1.30330, 1.28980 Support Levels: 1.27200, 1.24700, 1.23000
USDCAD Long Term Trend: Bullish
The market’s consolidation by tapering through a triangle pattern, which has started in the last month of 2020, is now reaching its final phase. Hence, we see a struggle between opposing market forces who are trying to redirect the price in their direction. The Bears have already attempted that with a breakout from below the triangle in March, only for the setup to be disrupted and withdraw into the triangle system.
It is now the buyers’ turn to drive the price upward after breaking the upper resistance line of the triangle using an ascending channel pattern. The price rose to reach 1.30330 but was also assuaged to make a single retest to renew the strength for an upward drive. But sellers counteracted at the upper border and caused the currency pair to slip back below 1.28980.
USDCAD Short Term Trend: Bullish
Having been diverted from the ascending channel, the price is now caught under the 1.28980 resistance level. The 4-hour chart shows that the market is now dipping towards the lower border of the triangle structure. The MACD (Moving Average Convergence Divergence) still has its lines above the zero level despite the falling volatility in the market shown by the Average True Range indicator. The bulls can be backed to edge out the bears and bounce back upward for a breakout towards 1.31810.
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