The pair of North American dollars have been without our attention for quite a long time. In today's article, we will try to compensate for this moment, and for the completeness of the technical picture, we will start considering price charts from a weekly period.
Weekly
At the auction of the last five days, the USD/CAD pair showed impressive growth. However, despite the strong growth, there are technical nuances that need to be paid attention to. First of all, we draw your attention to the fact that during the upward movement, trading on August 16-20 for the "Canadian" ended above the brown resistance level of 1.2800, which can be considered a plus for the bulls. But the further rise of the quote was blocked by the lower border of the Ichimoku indicator cloud and the orange 200 exponential moving average, which is already the merit of the bears. After reaching the maximum value at 1.2947, the pair corrected and ended trading at 1.2820. The rollback, as you know, is quite significant. At the auction of the current five-day period, the USD/CAD pair is trading with a significant decrease, near the strong technical level of 1.2600. The 50 simple moving average and the red Tenkan line of the Ichimoku indicator support the price.
Now, about the prospects of the pair on the weekly timeframe. If the bulls on this trading instrument manage to change the situation and strengthen the exchange rate radically, the nearest target will be the price area of 1.2926-1.2947. It is where the 200 EMA and the maximum trading values of the past five days are held. If the USD/CAD bears do not give the reins to their opponents, the pair will continue moving in a southerly direction and reach the blue Kijun line of the Ichimoku indicator, which runs at 1.2477. If we do not discount the strong and important psychological level of 1.2500, then in the price zone of 1.2500-1.2477, the pair can find support and turn back in the north direction. If the reversal patterns of candle analysis appear in the resistance area of 1.2926-1.2947, most likely, we will observe another reversal of the quote to the south. At the same time, it will be important at what level the maximum values of weekly trading will be shown. If they are lower than the previous ones, it will become clear that the bulls on the instrument have run out of powder in the flasks.
Daily
The classic reversal model of candle analysis "Tombstone," which was formed on April 20, perfectly demonstrated the weakness of the players to increase the exchange rate and their inability to move the quote up to higher prices. The next day, a strong fall of the pair followed, which became a confirmation of the working out of the reversal model of the "Tombstone" candle analysis. Now the USD/CAD bulls have an incredibly difficult task. They need to absorb the growth of the designated model, that is, break through the strong resistance of sellers at 1.2947. But that's not all. It should be borne in mind that the most important and very strong psychological and technical level of 1.3000 is slightly above the maximum values of August 20 above 1.2947. In my personal opinion, it will be possible to talk about the return of strong bullish sentiment and subsequent growth only after the alternate breakdown of 1.2947 and 1.3000. In the meantime, I am more inclined to assume the continuation of the bearish scenario, which means that I am preparing for USD/CAD sales. From a technical point of view for opening sales, the nearest and excellent area is a rollback to the price area of 1.2645-1.2670. A confirmation signal for opening short positions will be the appearance of bearish reversal patterns of candle analysis in the selected zone.
