FX.co ★ A33x | USD/CAD

USDCAD Chart Review: Today, we will discuss the price movement of the USD/CAD pair. Currently, this pair is trading at 1.38001, below the Donchian Channel's midpoint (1.38181). The MACD indicator is in negative territory, which is a sell signal, but this is merely additional confirmation. Intraday and daily trend strength indicators are negative, and the weekly DMI is also weakening. Furthermore, the 4-hour chart shows the price below the Ichimoku Cloud, indicating a bearish bias. The Heikin-Ashi indicator is also declining, indicating bearish momentum. Now is an excellent opportunity to sell this pair. We expect the price to fall below the 1.37961 support level today, which would strengthen the bearish outlook and trigger a bearish scenario.

If we can trade with more confidence, we may move in the direction of the current long-term uptrend. There are no specific buy signals. Currently, we are focusing on selling, but if the price breaks above the high of the past hour, there is a high probability that an upward correction will begin. Of course, the most likely scenario is a continuation of the selling trend. On the 4-hour chart, the price is currently near the lower boundary of an inverted triangle. Soon, this currency pair will turn upward, and the upper boundary of this triangle, 1.41351, could become a correction target. After reaching this level, the direction of the currency pair will reverse, and the price will turn downward. I expect this currency pair to fall to the lower boundary of this triangle, 1.37261, and then either reverse direction or turn upward.