Market Analysis – March 22
USDCAD Bulls attempted multiple times to soar above the 1.2980 significant level. This led to multiple false breakouts in August 2022. The price successfully launched from 1.2740 when the market was oversold to break 1.2980.
USDCAD Significant Levels
Resistance Levels: 1.3500, 1.3700, 1.3880
Support Levels: 1.3230. 1.2980, 1.2740
USDCAD Long-term Trend: Bullish
USDCAD has experienced a bullish breakout from a symmetrical triangle on the daily chart. After a volatile expansion, from 1.2980, the market formed a giant head and shoulders pattern. Higher lows and lower highs are assembled to form a symmetrical triangle on the daily chart. The bullish reversals when the Stochastic signaled oversold formed the lows of the triangle.
In January, the Buyers revived and launched from a double-bottom pattern. The Moving Averages (periods nine and twenty-one) crossed to foster an ascent. The bearish trendline failed to prevent an ascent. The bullish displacement propelled the market to 1.3880.
USDCAD Short-term Trend: Bearish
The market structure turned bearish after the test of the key level of 1.3880. On the lower time frame, the Moving Averages (periods nine and twenty-one) crossed to signify a bearish trend.
The price has declined from the 1.3880 key level to test a bullish order block on the daily chart. The test of the bullish order block is likely to end the lower timeframe’s bearish trend. The price is likely to shoot beyond the key zone of 1.3880 if the order block holds.
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