- Analytics
- News and Tools
- Market News
- USD/CAD Price Analysis: Bears lurking at key H4 resistance
USD/CAD Price Analysis: Bears lurking at key H4 resistance
- USD/CAD bulls are in town but they face a standoff at key 4-hour resistance.
- M-formation topping pattern could lead to significant downside in coming sessions.
USD/CAD has struggled to break 1.3600 as it climbs trendline support on the daily chart but suffers a blow from the US data pivot on Monday tempering the hawkish sentiment around the Federal Reserve to start the week. USD/CAD reached a high of 1.3665 on Friday and suffered a drop of around 90 pips on Monday for the opening balance. At this juncture, bulls need to commit or face prospects of a significant correction in the coming days.
USD/CAD daily chart
The channel is valid, for the time being, so there are prospects of a move higher should the support hold. However ...
There is an M-formation topping pattern on the 4-hour chart and should the neckline hold as resistance, the bears could be encouraged to follow through:
The M-formation is a reversion pattern and hence the price is coming up to test the neckline. 1.3520 to the downside is key if the neckline were to act as resistance.
© 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
