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Forex Trading: USDCAD Is Ranging at $1.3472, Expecting a Breakout

USDCAD Price Analysis – May 16

The sideways movement continues because the Bears defended the $1.3472 level last week. In case the Bulls increase their momentum and break up the $1.3472 level, the price will rally towards $1.3678 level. Should the Bears defend the $1.3472 level, the price may bounce off the resistance level or sideways movement may continue on the daily chart

 

USD/CAD Market

Key levels:

Supply levels: $1.3472, $1.3648, $1.3845
Demand levels: $1.3330, $1.3207, $1.3093

 

USDCAD Long-term trend: Ranging

On the long-term outlook, USDCAD is on the ranging movement. USDCAD has been consolidating at the supply level of $1.3472 for more than two weeks. The Bears’ momentum and the Bulls’ momentum are at equilibrium; the Bulls have low pressure and could not break forth the $1.3472 level. Likewise, the Bears have weak momentum and could not push the price below the level it is now. The daily candle formed today is turning to Doji to indicate indecision in the USDCAD market.

USDCAD Daily chart, May 16

The sideways movement continues because the Bears defended the $1.3472 level last week. In case the Bulls increase their momentum and break up the $1.3472 level, the price will rally towards $1.3678 level. Should the Bears defend the $1.3472 level, the price may bounce off the resistance level or sideways movement may continue on the daily chart. However, the currency pair is trading directly on two EMAs.

USDCAD medium-term Trend: Ranging

USDCAD is on the sideways movement in the medium-term outlook. The currency pair started moving sideways on April 26 till date. The price is ranging around the supply level of $1.3472. The Bulls require a strong momentum before the price can rally to the north. It is only the strong pressure from the Bears that can make the pair rally to the south.

USDCAD 4-hour chart, May 16

The 21 periods EMA and 50 periods EMA are close to each other flat horizontally at the level and the price moving around the two EMAs as one of the signs of consolidation in the USDCAD market.

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      Remember, all trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.

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