USDCAD is heading towards the support level of 1.2720. This support area will act as a catalyst for the market to pump up. At this level, we have to see how market reacts with price action. If market prints an engulfing at this support, we will hop on to the long position.

USDCAD is printing an ascending trendline channel. Right now, it is testing the lower trendline. The market may break this trendline, but it won’t determine the selling pressure. Until the support is breached, we are still in a bullish trend with market printing HH’s and HL’s.

The 75-78.6% retracement level is a little below the support and is in confluence with the support. The price of the retracement level is 1.2700. We may see market wicking at this retracement level. If market tests this level, we will see a confluence with the support level for the continuation up.

EMA 50 has had a bullish breakout and impends a retest, and EMA 200 is also bullish. In EMA, we have a bullish death cross. At the support level drawn on the charts, we will see EMA 50 retest, or maybe, the EMA being broken out for sells. This retest would add another factor of our technical to go long.

Currently, RSI is at 46 and CCI at 18.The oscillators have printed a hidden bullish divergence. This divergence needs to be impacted at the support level.

Given the technical analysis, the support level is solid for USDCAD to go long. At this level, we have a mix of few factors, with prices ranging a bit below the support, at the retracement level.

USDCAD buys from the support/demand level

Dec 06 2021