USDCAD Price Analysis – May 2
On April 24, the Bulls tried to break up the $1.3472 but the Bears rejected with the Bearish reversal candle pattern called evening star. The bullish break up at $1.3472 price level will expose the supply level of $1.3648 which may be its target.
Supply levels: $1.3472, $1.3648, $1.3845
Demand levels: $1.3312, $1.3207, $1.3093
USDCAD Long-term trend: Ranging
USDCAD is on the sideways movement on the long-term outlook. The currency pair has been range-bound within the price level of $1.3472 and the demand level of $1.3312 since March 14. The Bulls defended the demand level of $1.3312 several times preventing the Bears to break out. Likewise, the Bears defended the supply level of $1.3472 hindering the bullish breakout. On April 24, the Bulls tried to break up the $1.3472 but the Bears rejected with the Bearish reversal candle pattern called evening star.
Although, the currency pair is directly on the two EMAs within the range and 21 EMA is above the 50 EMAs but the USDCAD is ranging above the two EMAs; which connotes that sideways movement is ongoing in the USDCAD market. The Relative Strength Index period 14 is at 60 levels and the signal line is pointing up to indicate a further increase in USDCAD price. The bullish break up at $1.3472 level will expose the supply level of $1.3648 which may be its target.
USDCAD medium-term Trend: Bullish
USDCAD is on the ranging trend on the medium-term outlook. For many weeks, USDCAD has been on the sideways movement within the range of $1.3472 and $1.3312. The price experienced a fake breakout at the upper level of the range on April 24, the Bears returned the price back below $1.3472 to continue with the consolidation mode.
The Relative Strength Index period 14 is at 60 levels and the signal lines pointing upward to indicate a buy signal.
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