USDCAD has been bullish due to the fact of the USD strength fundamentally. This fact is going to take months to factor its entire effect, which will in return impact the USD strength, pushing it towards the bullish side. Now looking at the technical side of the H4, the strucutre is bullish. The market is forming higher highs and higher lows. The trend is still bullish and we will be taking advantage of this bullish momentum. 

For the trendline, we do not see any trendline impact on the charts currently. That being said, we have to further look in to as to where the market is headed. The ascending trendline may be tapped in between the zones with a rejection. 

The golden retracement area hangs in between the support and the resistance. This retracement usually acts as a stop hunt level to grab liquidity. Apart from this, we will only take long positions from this retracement instead of hopping on to the longs from the support level. 

The EMA 50 will be in confluence at the retracement and trendline rejection level. The upward curved EMA has the potential to tap the prices once it reaches the drawn levels.

RSI tapped the over bought level and is currently residing at 60. We need to see what the oscillator presents us once the market taps the over sold levels. There is a probability of the market forming the bullish divergence once it reaches our potential level.

USDCAD longs from 1.3000

Jul 14 2022