Hello!
Today, I would like to consider a couple of North American dollars, where there is quite an interesting technical picture. Let's start with the results of last week's trading.
Weekly
At the trading on June 22-26, the USD/CAD currency pair strengthened, but not everything went so smoothly for the bulls on this instrument. As you can see, at first the quote fell to the level of 1.3485, where it gained strong support and turned in the north direction. Last week's highs were shown at 1.3714 and the closing price was 1.3683.
As it is clear, looking at this timeframe, the strong resistance of sellers is in the area of 1.3700-1.3715. However, even updating the maximum values of last week at 1.3714 will not give a clear answer about the further ability to move in the north direction. The fact is that the Tenkan line of the Ichimoku indicator runs at 1.3743, and the Kijun line runs at 1.3811. It is reasonable to assume that each of these lines can provide strong resistance and turn the quote down. I believe that only a true breakout of 1.3811, with a mandatory close above, will indicate a bull market for USD/CAD.
To resume bearish sentiment for the pair, a breakout of support at 1.3485 is required. Only updating the minimum values of the previous week and closing the current five-day period under this level will give the bears an advantage in USD/CAD and determine their further goals in the price zone of 1.3445-1.3400. This is where the 50 simple and 89 exponential moving averages pass, which can support the price. If both moves are broken, the pair risks falling to the area of 1.3330-1.3315.
Daily
On the daily timeframe, it is visible that the exponent level significantly strengthens the horizontal resistance level of 1.3714, since it is located at 1.3710. At today's trading, the pair shows a confident growth, as a result of which it can once again test the 89 EMA and the resistance of sellers at 1.3714. In the case of a true breakout of the resistance level of 1.3714, the road to 50 simple moving average will open, which is located at 1.3792. This is directly below the significant technical level of 1.3800, so there is no doubt that the USD/CAD bulls will have to face quite strong resistance from sellers here.
However, in the case of a true breakdown of the resistance of 1.3714 and fixing higher on the rollback to the broken level, you can plan to buy the pair. Even more clearly, the growth prospects will begin to be viewed after overcoming the mark of 1.3830.
If the current ardor of the bulls runs out and USD/CAD turns to the south, then the nearest target of the bears will be the area of 1.3600-1.3575. As you can see, here is the Tenkan line and the 200 exponential moving average. If buy signals appear in the designated area, we try to open long positions with targets near 1.3700. I assume that in the current situation, the main struggle of the warring parties will take place near this important level.
Good luck!
