- USD/CAD bears are lurking above key support structures, on the prospect of moderation.
- 1.3480 and 1.3470 are key supports, while the bulls look for the resistance of 1.3520.
Based on the above analysis, Price Analysis of the USD/CAD: Bears envision a run towards 1.3320 as below the key structure on the 4-hour chart, the price has traveled according to the forecast as follows:
USD/CAD Prior Analysis
There were eyes on a move back to the offer, however, the pair had painted an M-formation on the charts as illustrated below:
The price, however, had also pulled out a key structure and to do so, we approached the lower time frames:
As we can see, the market was below the 1.3393 and 1.3385 4-hour structure. This was a 4-hour bar where the price had rallied earlier. Therefore, this was considered a key area so it was always going to be interesting to see if the bears could stay below it for longer:
It was said that if the bears did, then the 1.3350 and 1.3320 levels would be in the spotlight:
USD/CAD Update
As seen, the price went down a bit, to the support, and bounced from there, straight towards the neckline of the M formation.
The momentum is strong, so a continuation is possible. However, traders can watch price action for slowdown and prospects of a fade back into longitude as follows:
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
