- Analytics
- News and Tools
- Market News
- USD/CAD Price Analysis: Bears taking on critical weekly support, eyes on 1.2850
USD/CAD Price Analysis: Bears taking on critical weekly support, eyes on 1.2850
- USD/CAD is within the bear's lair while below 1.2960, 1.2935.
- The price is in the process of forming an M-formation on the 4-hour chart.
USD/CAD has been melting to the downside following the bull's capitulation out of a rising trend from 1.3060s resistance. The following illustrates the bearish bias on the 4-hour chart:
USD/CAD H4 chart
The price rallied into a well-respected resistance zone and has been in the hands of the bears since the start of this week. The market left behind a harmonic pattern in the same time frame and we are seeing a series of lower lows:
Crucially, the price has broken a key support area, the neckline of the harmonic pattern near 1.2935. The price is retesting this as resistance and a little higher, near 1.2960. If these structures hold, then the bears will strap in for an accelerated move to the downside to challenge below key support of 1.2895 to target 50 pips lower.
However, the weekly W-formation's neckline is an obstacle:
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
