USDCAD Daily – Bulls might be gathering strength

Chris Lee

Written on 28/06/2021 by Theunis Kruger, FX Trainer at FXTM

Bull & Bear Statues with Stock Market Charts
Bull, bear, charts and stock charts as symbols for the stock exchange

The Loonie on the D1 time frame was in a downtrend until 1 June. A lower bottom was formed at 1.20066, and demand started overcoming supply.

After the bottom at 1.20066, the market broke upwards through the 15 and, 34 Simple Moving Averages, and the Momentum Oscillator broke the zero baseline into positive territory. The change to bullish  momentum was confirmed with a Three White Soldiers Candle Pattern occurring during the breakout.

A critical resistance level was formed when a higher top was recorded on 21 June at 1.24867. The bears then tried to regain control but a higher bottom formed on 23 June at 1.22521 at a support level near the 15 Simple Moving Average.

If the Loonie manages to break through the critical resistance level at 1.24867, three possible price targets can be anticipated. Attaching the Fibonacci tool to the higher top at 1.24867 and dragging it to the support level at 1.22521, the following targets can be calculated. The first target can be estimated at 1.26317 (161%), the second price target may be calculated at 1.28663 (261.8%). Finally, the third and final target may be predicted at 1.32459 (423.6%).

If the 1.22521 possible support level is broken, the anticipated price targets must be invalid and re-assessed.

As long as bulls maintain a positive sentiment and demand overcomes supply, the Loonie on the Daily time frame will be indicated as a bullish scenario.

USDCAD Daily Chart Showing Rise on 21st June 280621

For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

 

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


Chris Lee

Latest news

How To Use ETFs To Trade The Current Market Conditions?
For investors, 2022 has been quite a year. Read more
Contagion Warning From Crypto Markets Could Be A Buy Signal
One of the reasons the 2020 market crash was so severe and sudden was that overextended investors sold out of positions to liquidate funds, which drove prices down further, and created a need for further selling. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 66% of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Forex Broker Pepperstone LogoBetween 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9

    Forex Fraud Certified Brokers

    BDSwiss Logo
    HYCM Logo
    skilling logo
    OctaFX Logo
    Forex.com Logo
    Pepperstone Logo
    IQ Option Logo
    City Index Logo
    Plus500 Small Logo
    IC Markets Logo
    Exness Small Logo
    LegacyFX Small Logo
    XM Logo
    BlackBull Markets Logo
    ATFX Logo
    FXTM Logo
    AvaTrade logo