USDCAD started forming higher highs and higher lows. This tends to seem that market is in a bullish trend on the H4. We will be longing the USDCAD from 1.2850 towards the next resistance level. The price action depicts the current candle moving higher than the previous bullish candle. This fact gives us a price action bullish momentum towards the resistance level.

The ascending trendline has another tap remaining at the support area where our longs are waiting. Where as, the descending trendline has broken out for buys and the market has validated the price action. 

The golden retracement area of 75-78.6% is in confluence with the support level. This double confirmation of technical factors will give us a confirmation on the bullish side.

EMA 50 has been ranging with no clear indication of the direction. Currently, the EMA 50 is bearish, being above the price action. The curve remains flat which indicates not much to determine from the trend point of view. 

RSI is 52, which aligns with our overall technical factor of bullish move. There is a window towards the over bought region till the bullish cycle has momentum. At the over bought level, we will revaluate the situation of the pair.

USDCAD buys from 1.2850

Aug 09 2022