07.07.202011:07 Forex Analyse & Reviews: USD/CAD Sharp Recover Incoming!

USD/CAD failure to reach the near-term downside obstacles has signaled another upside momentum. The USDX's rebound has boosted the greenback, which is regaining ground versus its rivals.

As you already know, the US ISM Non-Manufacturing PMI was reported at 57.1 points, better versus the 50.0 estimates, the expansion has saved the USD from downside in the short term and has helped the currency to dominate the market again.

Exchange Rates 07.07.2020 analysis

USD/CAD has failed to retest the downtrend line, channel's resistance, and the S1 (1.3490) level signaling that the buyers are strong on the H4 chart. The price is almost to reach the PP (1.3597) level and the 61.8% level, an aggressive breakout will send the quote towards the 1.3665 static resistance.

I believe that only a valid breakout above the 1.3665 level will suggest buying and will confirm a larger upwards movement towards the 50% (1.3808), or higher towards the 38.2% (1.4011) level.

  • USD/CAD Tips & Conclusion

The failure to approach and reach the lower median line (LML) of the orange ascending pitchfork suggest buying again, personally, I believe that a jump and close above the 1.3623 will confirm a further increase. The Stop Loss should be hidden below the 1.3519 former low, while the R3 (1.3812) stands as an important upside target/obstacle.

Another leg higher, significant increase, could be invalidated if USD/CAD makes another lower low, to drop below the 1.3519 level.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Uitgevoerd door Ralph Shedler,
Analytische expert
InstaForex Group © 2007-2020
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