FX.co ★ NexusTrader | USD/CAD

USDCAD Intraday Analysis: Our discussion focuses on the current price action evaluation for the currency pair USD/CAD. The USD/CAD pair experienced a further decline yesterday, reaching a crucial support level of 1.37536. The substantial bearish involvement, demonstrated by the subsequent breach of this level, accompanied by sustained high volumes during the downturn, suggests a consolidation below 1.37536 at the close of the trading day, indicating favorable prospects for the continued strengthening of the Canadian dollar, especially with support from a marginally rising oil market. Therefore, my focus remains on selling, anticipating a modest pullback to around 1.37536, followed by a rebound and a resumption of the decline towards targets near 1.36966. By analyzing the USD/ CAD chart, it is possible to explore selling opportunities from levels such as 1.37286 and 1.37486. The positioning of the pair below the hourly moving average favors selling, with a potential target at 1.36886 and a stop loss at 1.37686. The MACD indicator in the overbought zone and the M-15 moving average above the price chart align with the hourly time frame, confirming the sales stance. The sales confirmation on multiple time frames, including M-15 and H-1, provides confidence in selling the pair.

Over the past 24 hours, contrary to expectations, the American dollar continued its depreciation. The USD/CAD pair's current price of 1.37266 reinforces its bearish direction. Selling remains a priority considering the hourly chart indicators, and the expectation is for further movement to the bearish. Bears will likely strive to push the pair below the psychological level of 1.36786. Today, the USD/ CAD currency pair exhibited distinctive behavior, closing at the previous day's price level. I plan to monitor the highest point of the recent daily candle (1.38386) in anticipation of a sudden downward movement. If a head and shoulders pattern forms on a more petite time frame, I intend to initiate a trade, with no intention to hold positions beyond the price point of 1.38636.