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 1.2900 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 descending trendline has broken out for buys on the pair and has been strongly validated. After the breakout buy, market has also broken the resistance level and will continue moving up towards the next resistance.

As the bullish pressure has been solid, the retracement did not have a chance to mark itself. Therefore, in this setup, we do not see a valid retracement to factor in with the other technical factors.

EMA 50 has clearly broken out from the EMA 50 towards the bullish side. This breakout buy is already being retested at the support level and will continue moving up towards the resistance level we have market.

RSI is 62, 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 1.2900

Aug 16 2022