The USD/CAD currency pair is showing interesting price movements across multiple timeframes. Based on the latest technical analysis, there are significant opportunities traders can capitalize on. This article will discuss short-term, medium-term, and long-term trends while offering actionable trading advice to help you make the most of the current market conditions.
USD/CAD Analysis on H1 Timeframe
Trend
On the H1 timeframe, USD/CAD is currently in a sideways movement after correcting from its previous highs. The SMA-9 line is relatively flat, indicating a lack of dominant trend. However, trading volume is starting to increase, suggesting a potential breakout.
Support and Resistance
- Key support: 1.3920
- Key resistance: 1.3980
The price is approaching the resistance level at 1.3980, which could act as a reversal point if not broken.
Technical Indicators
- Stochastic RSI: The indicator is in the overbought zone (79.87 and 81.91), signaling potential price weakening in the short term.
- SMA-9: The price is slightly above the SMA, indicating weak bullish momentum.
H1 Conclusion: The price is likely to correct towards the 1.3920 support zone before determining its next direction.
USD/CAD Analysis on H4 Timeframe
Trend
On the H4 timeframe, USD/CAD shows a mild bearish trend after failing to hold above the SMA-9 level. This trend is visible in the gradual decline supported by dominant bearish candles.
Support and Resistance
- Key support: 1.3900
- Key resistance: 1.4000
The 1.3900 level is a critical area to watch to determine if the bearish trend will continue. Meanwhile, the 1.4000 level serves as a major resistance for upward movement.
Technical Indicators
- Stochastic RSI: The indicator is in the oversold zone (27.34 and 22.68), suggesting a possible rebound soon.
- SMA-9: The price is below the SMA, indicating bearish pressure is still dominant.
H4 Conclusion: In the medium term, there is a possibility of a rebound towards 1.3970 if the 1.3900 support level holds.
USD/CAD Analysis on Daily Timeframe
Trend
On the daily timeframe, USD/CAD remains in a long-term bullish trend, despite experiencing a healthy correction from the recent high of 1.4100. The SMA-9 line continues to act as dynamic support, sustaining the trend.
Support and Resistance
- Key support: 1.3850
- Key resistance: 1.4000
The 1.3850 level is a strong support based on previous price movements. Meanwhile, the 1.4000 level acts as a key psychological resistance.
Read: How to identify support and resistance
Technical Indicators
- Stochastic RSI: The indicator is in the oversold zone (13.41 and 15.22), providing a strong signal for a potential bullish rebound.
- SMA-9: The price is approaching the SMA, which often serves as a bouncing area for bullish trends.
Daily Conclusion: The bullish trend remains intact, with the price likely to retest the resistance at 1.4000 once the correction is complete.
USD/CAD Price Movement Predictions
- Short-term (H1): A correction towards the 1.3920 level is expected before a potential rebound.
- Medium-term (H4): A rebound towards 1.3970 is likely if the 1.3900 support level holds.
- Long-term (daily): The bullish trend remains strong, with a target resistance at 1.4000.
Trading Recommendations for USD/CAD
- Recommendation: Buy
- Entry point: 1.3920
- Take profit (TP): 1.4000
- Stop loss (SL): 1.3850
Reasons
- The Stochastic RSI on H4 and daily timeframes signals an oversold condition, often followed by a rebound.
- The 1.3920 and 1.3900 support levels are strong areas based on technical analysis.
- The long-term bullish trend on the daily timeframe supports a buy bias.
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