USDCAD, in a weekly time frame, has left a bullish wick towards the resistance, which needs to be filled in this week. The trend in weekly, is bearish until, unless, the resistance is breached at the price of 1.2650.

- Market structure: We are still in a bullish direction making HIGHER HIGHS and HIGHER LOWS. The solid support stands at 1.2350. This support also confluences with retracement levels of 75-78.6%. The support is untested and is due for a correction.

- Trendline: Currently, we are in an ascending channel in the market. First tap we got on the resistance trendline. Now, we will look for the test of the support trendline which confluences with the support level.

- EMA'S: EMA 200 is above the market whereas, EMA 50 is below and is due for a test. The test is considered to be at the support level, as mentioned earlier, at 1.2350.

On the upper side, we would buy till the test of EMA 200 which probably would be tested at 1.2600.

- RSI/CCI: RSI has a bearish divergence, as shown in the chart. The effect has been factored in during the last Friday session. That being said, RSI is still positive above 50, at 64. Hence, still a bullish length.

CCI is in an ascending pennant. No bearish divergence was formed as it was in RSI. The length for CCI also hover around 125, above the neutral level of 0.

- Market structure: Market structure is bullish and the support formed is in confluence with the daily level. Which makes it a stronger level to go long.

- Pattern: We are in an ascending channel, also, aligned with daily channel.

- Retracement: Golden retracement level remains at the level of 1.2350, which confluences with the support level.

- EMA'S: Both EMA’s are below the current market, referring to a bullish bias. Right now, EMA 50 is being tested for the bull leg up. But, for a higher probability, we will wait for the EMA 200 to be tested, which again gives us added confirmation along with the support level.

- RSI/CCI: RSI and CCI both neutralized their moves up and are standing at 50 and 39 respectively. This signals a bull continuation towards the 1.2600.

In this setup, we have 4 confirmations for the long position. It makes a solid trade plan having 3-4 confirmations at a level.

USDCAD good buys from 1.2350

Jul 12 2021