USDCAD starting its bullish rally and broke the resistance level at 1.2660. Now, this resistance has turned support and we will be looking for buys. Market has formed a bullish structure with higher highs and higher lows. Once another low is formed at the support at the given price, and we see a pinbar or an engulfing candle, then we will have our bullish confirmation.

We have one descending trendlines in play right now. The resistance trendline was breached for the breakout buy and was clearly validated by the price action. Also, the market has broken the immediate resistance after the trendline breakout buy which indicates the bullish momentum has been built to continue moving up.

At this current level, there is no retracement indication which deters the confluence at the support level.

Both the EMA’s are bullish but the death cross remains bearish. Market has broken out for buys from both the EMA’s and has to retest either of the level. Currently, the EMA 200 is the immediate EMA below the price action. Therefore, we anticipate the retest of this EMA at the support retest.

Both the oscillators are in an over bought region. RSI is at 71 and CCI is at 230. These over bought regions need to be neutralized. When the neutral levels are achieved, we may see the price being at the support level. This support level will be in confluence with the other technical factors.

The USDCAD is a basic break and retest setup. This setup usually has a high potential to continue moving up. Our profit target on this setup is the price is 1.2840.

USDCAD longs from support

Apr 24 2022