FX.co ★ crystal66 | USD/CAD

Technical Analysis of the USD/CAD Currency Pair (H1, H4)

Good morning! The USD/CAD currency pair. After yesterday's session, the price was able to establish an ascending trend on the forefront, following a visit to the lower boundary of the support level the day before yesterday, where liquidity was absorbed and the price reversed back north. In my opinion, the manipulation was quite successful, and resistance levels at 1.40081 were considered - where an order block is located, but buyers failed to reach that price level, resulting in an incomplete break. As for the support level, the targets remain the same: the key support level at 1.39088 - I anticipate a breakthrough and continuation to the south. Another important support level is at 1.39365, as it is in an imbalance zone - I expect a pullback after the current correction from this level. The price is trading in the range of 1.3960, in a market uncertainty zone, making it difficult to forecast and make the right decision at the moment. However, in my opinion, the north side has not been fully explored yet, and it might be possible to see a touch of the upper boundary of the key resistance level at 1.40100. The high is slightly above this level. From a technical indicator perspective, I observe a descending movement: RSI is trading close to the oversold zone, and the Awesome Oscillator indicator shows more bullish interest in the supply and demand area. I am considering a buy on the hourly timeframe. H4 Timeframe

On the higher timeframe, 4 hours, the market is showing a correction, but it has not broken the overall trend, as it managed to establish a new weekly local minimum. I am considering positions towards the south - where bears are likely to show potential. I am looking at a test towards the key resistance level located in the range of 1.4000 - essentially, the outcome is similar to the younger timeframe. If bulls manage to break the key resistance, then the target will shift to the next resistance level, slightly higher at 1.4060. From there, selling opportunities can be considered in the long term. A similar outcome is expected if we start working on the lows - in that case, the key support levels become 1.3910 (this support level is an open demand zone) and another level, which would also be good to see - 1.3760, where an order block is located. Overall, today the priority is the high of this currency pair - we will base our decisions on that.