17.03.2023 06:06 PM
USD/CAD confirming its breakdown

The USD/CAD pair increased in the last hours and now is trading at 1.3760. Still, the bullish momentum could be only temporary as the rate could only test and retest the immediate resistance levels before going down.

Fundamentally, the US and Canadian data came in worse than expected. The US Prelim UoM Consumer Sentiment represented a high-impact event. The indicator came in at 63.4 points versus 66.9 expected and compared to 67.0 in the previous reporting period.

USD/CAD Triangle!

This image is no longer relevant

Technically, the USD/CAD pair is moving somehow sideways in the short term. It's trapped between 1.3665 and 1.3813 levels. As you can see on the H1 chart, the rate developed a triangle pattern.

Now, it challenges the weekly pivot point of 1.3760 and the lower median line (LML). These levels along with the downtrend line represent resistance levels. Only taking out the resistance levels and making a new higher high activates further growth.

USD/CAD Trading Conclusion!

False breakouts through the resistance levels may announce a new sell-off. This is seen as the first short opportunity. Still, only a valid breakdown below 1.3665 really activates a larger drop and brings good selling signals.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In June we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
  • 30% Bonus
    Receive a 30% bonus every time you top up your account

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback