Daily chart: On Friday, the loonie had a very bullish session, climbing over 100 pips, closing the weekly price near the 1.0281 resistance level. Because of this large rise, this pair may do a consolidation during the first days of the week to form a lower high pattern to continue rising, but we must be careful with the resistance at the 1.0281 level, because that resistance is very strong, along with resistance at the 1.0321 level and possibly in that resistance, this pair could do a bearish rebound to fall to the support at the 1.0199 level. If the loonie manages to break the 1.0321 level, it is very possible that this pair rise to the 1.0411 level in the medium term. The MACD indicator is in the positive territory.
H4 chart: The loonie is trying to form a lower high pattern below the resistance level at 1.0293 and above the support at the level of 1.0270. If the USD/CAD breaks the resistance level of 1.0293, this pair may rise to the 1.0341 level. At the technical level in this chart, it is not feasible that the loonie could have big falls during this week, due to the large number of supports that it has in the way and also, this pair is above the 200 day moving average, supporting a bullish outlook in the short term. The MACD indicator is in the positive territory, starting to show signs of overbought levels in this pair and also, it is showing weakness in the upward trend of the moment, so it is very possible that this pair will perform a consolidation over Monday and Tuesday, and then define its upward trend. For now, I recommend placing buy orders if the loonie consolidates above resistance at the 1.0293 level.
H1 chart: In this chart, the USD/CAD is forming a lower high pattern below the resistance level at 1.0281 and above the support at the level of 1.0252. This consolidation was expected due to the high rise this pair had on Friday. For today’s session, we do not expect significant changes in this pair, so it would be difficult to do intraday trading today. However, if the USD/CAD breaks the resistance level of 1.0312, it is very possible that the loonie may rise to the resistance at the 1.0380 level. Our bullish outlook in the short term could be invalidated if the USD/CAD breaks the support at the 1.0252 level, which would open the way to fall to the next support level at 1.0206.
Fundamental outlook: For today’s session, we expect low volatility in all CAD pairs since the Canadian banks will be closed due to Victoria Day.
Trading recommendations for today: Based on the H4 chart, place buy (long) orders only if the USD/CAD breaks with a bullish candlestick, the resistance level at 1.0293, take profit at 1.0341, and stop loss at 1.0250.
The material has been provided by InstaForex Company – www.instaforex.com
Daily chart: On Friday, the loonie had a very bullish session, climbing over 100 pips, closing the weekly price near the 1.0281 resistance level. Because of this large rise, this pair may do a consolidation during the first days of the week to form a lower high pattern to continue rising, but we must be careful with the resistance at the 1.0281 level, because that resistance is very strong, along with resistance at the 1.0321 level and possibly in that resistance, this pair could do a bearish rebound to fall to the support at the 1.0199 level. If the loonie manages to break the 1.0321 level, it is very possible that this pair rise to the 1.0411 level in the medium term. The MACD indicator is in the positive territory.
H4 chart: The loonie is trying to form a lower high pattern below the resistance level at 1.0293 and above the support at the level of 1.0270. If the USD/CAD breaks the resistance level of 1.0293, this pair may rise to the 1.0341 level. At the technical level in this chart, it is not feasible that the loonie could have big falls during this week, due to the large number of supports that it has in the way and also, this pair is above the 200 day moving average, supporting a bullish outlook in the short term. The MACD indicator is in the positive territory, starting to show signs of overbought levels in this pair and also, it is showing weakness in the upward trend of the moment, so it is very possible that this pair will perform a consolidation over Monday and Tuesday, and then define its upward trend. For now, I recommend placing buy orders if the loonie consolidates above resistance at the 1.0293 level.
H1 chart: In this chart, the USD/CAD is forming a lower high pattern below the resistance level at 1.0281 and above the support at the level of 1.0252. This consolidation was expected due to the high rise this pair had on Friday. For today’s session, we do not expect significant changes in this pair, so it would be difficult to do intraday trading today. However, if the USD/CAD breaks the resistance level of 1.0312, it is very possible that the loonie may rise to the resistance at the 1.0380 level. Our bullish outlook in the short term could be invalidated if the USD/CAD breaks the support at the 1.0252 level, which would open the way to fall to the next support level at 1.0206.
Fundamental outlook: For today’s session, we expect low volatility in all CAD pairs since the Canadian banks will be closed due to Victoria Day.
Trading recommendations for today: Based on the H4 chart, place buy (long) orders only if the USD/CAD breaks with a bullish candlestick, the resistance level at 1.0293, take profit at 1.0341, and stop loss at 1.0250.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: