Being in a bullish trend, we will continue looking for buys on USDCAD.

The market structure on USDCAD is still bullish with HH’s and HL’s. The support level where the market is currently resting is 1.2620. This level if held, we will see the market to go back to the previous high.

USDCAD is in a descending channel. The upper channel has been tapped. We will wait for the lower trendline to be tapped at the support level, for the market to further scale back up. These will confluence with the support level further.

At the support level of 1.2620, we have a confluence of the golden retracement level of 75-78.6%. This retracement having a confluence on the support level highlights the strength of this region. This impulse wave would continue up towards the 0 retracement level.

Both the EMA 50 and EMA 200 are in a bullish sentiment, with a bullish death cross. After the breakout buy of the EMA 50, market was unable to retest at the EMA 50. At the support level, we anticipate a retest of the EMA 50. This EMA 50 will give us a second factor for buys.

With the oscillators, both are in the over-sold region. The RSI is at the 46 levels, whereas CCI is at 24. We need to wait for the oscillators to breakout from the neutralized levels for buys, or fall back towards the over-sold region, to form a bullish divergence. If this happens, we will have an added confluence point along with other technical factors.

The support is strong in this scenario. If market tends to break the support level, we will consume the loss and further look for another trade setup.

Buy USDCAD

Nov 25 2021

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