USDCAD is in a bullish trend with the structure forming higher highs and higher lows. This means, we can easily take any trade which retests the resistance turn support. In this instance, we have the 1.3100 support level which has a sound strength for make another bullish upwards, breaking past the previous high which has just been created right now.

The ascending trendline is a little below the current price action but it does not denote that the market if broken out for sells, has turned bearish. Until the structure turns bearish, trendline breakout sell won't effect its bullish momentum.

The retracement area is in confluence with the support level with the level being 61.8%. This level usually plays out decently in a trend.

EMA 50 is bullish and is below the current market prices. The steep curve denotes the bullish momentum is in action. We might not see the retest of this EMA.

RSI is at 62. We need to wait for the market to neutralize at the 50 level in order for the market to confluence with the support and other technical factors. We will wait for this neutrality level in order for market to push our long orders.

USDCAD range bound in a bullish setup

Sep 07 2022

Stop Loss -0.49%

Holding time 10hr

1.30986

Entry price

1.30342

Stop loss price