USDCAD – Market Overview
U.S. Dollar/Canadian Dollar FX:USDCAD
The market made a good upward movement in the direction of the main uptrend. The space between 1.34000 and 1.34600 became a resistance zone , and it could stop the market. Now we have a reversal with possible falling to the main uptrend line. RSI and MACD histogram confirm the price reversal. Even MACD lines and DMI support the further upward movement, a correction will be logical in the bullish structure.
The possible falling can give trading opportunities on lower timeframes. If the price drops below 1.34000 level, it will be a good signal supporting the bears. The price will be able to reach 1.33000 and 1.32000 support levels which can be used for fixing the profit from short positions or for buying in the direction of the main uptrend. For opening long positions, we will use reversals signals.
In order to confirm the continuation of the uptrend, the price will have to move above a new downtrend line, but buying based on a breakout signal won’t be good. The entry level will be too far from the best buying zone, which is at the uptrend line.
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Source: TW DLavrov