USDCAD 📶Technical Analysis:
Weekly Chart:
🟠 Price is in a long-term bullish trend, confirmed by a trendline formed since 2021 and 3 MAs aligned bullish.
🟡 Price tested major resistance at 1.4600-1.4700, which was previously tested in 2016 and 2020.
🟢 Strong pullback after testing resistance, indicating a potential bearish reversal pattern.
Daily Chart:
🟢 Strong bearish candle on the daily chart confirms that the weekly resistance holds.
🟡 Price volatility influenced by Trump's tariff decision.
🟢 The bearish momentum on the daily chart confirms the trend reversal from bullish to bearish.
🔴 The next strong support is around 1.3900, where the price has failed to break five times.
4H Chart:
🟡 Price has been consolidating since Dec 2024 between 1.4450 (resistance) and 1.4300 (support).
🟡 Price initially broke above the range due to tariff news but quickly returned to the consolidation zone.
🟢 Strong bearish candle broke through the lower support at 1.43, signaling potential bearish continuation.
🟢 The break of support suggests a bearish outlook, with the next targets near 1.3900.
🟢 The Moving Averages (MAs) are crossing, indicating a potential shift to a bearish trend.
🔤 Summary:
🟡 Waiting for a retest of the broken 1.43 support level to confirm the bearish trend continuation.
🟡 Expecting a correction in the bearish trend with the formation of additional signal candles that confirm the bearish momentum after the retracement.
🟡 Watch for the formation of bearish candles after the correction, either near the broken support level or EMA levels for confirmation before entering the bearish trade.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.