Forex Trading: USDCAD Is Range-Bound Within $1.3312 – $1.3472, Expecting a Bullish Breakout

Forex Trading: USDCAD Is Range-Bound Within $1.3312 – $1.3472, Expecting a Bullish Breakout
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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.

 

USD/CAD Market

Key levels:

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.

USDCAD Daily chart, May 2

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.

USDCAD 4-hour chart, May 2

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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About AzeezMustaph

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Azeez Mustapha is a technical analyst, has many years of trading experience in the stock exchange and the crypto markets. He has broad experience in Forex trading, coaching, and funds management