USDCAD Daily – Bulls might rise from the ashes
PRESS RELEASE Written on 06/04/2021 by Theunis Kruger, FX Trainer at FXTM
The USDCAD currency pair, on the D1 time frame, was in a downward curvature until the 18th of March, when a lower bottom was recorded at 1.23648. Bulls detected an opening and made their move at that level and demand overcame supply.
After the bottom at 1.23648, the market broke through the 15 and 34 Simple Moving Averages, and the Momentum Oscillator broke the zero baseline into positive territory. That could have warned technical traders of a possible price reversal.
A probable critical resistance level formed when a top was recorded on the 30th of March at 1.26472. Sellers are currently trying to drive the market lower but the USDCAD pair might find backing and make a higher bottom at a possible support level formed on the 5th of April at 1.25020.
If the pair manages to break through the critical resistance level at 1.26472, three possible price targets can be anticipated. Attaching the Fibonacci tool to the top at 1.26472 and dragging it to the possible support level at 1.25020, the following targets can be calculated. The first target can be estimated at 1.27369 (161 %), the second price target may be calculated at 1.28821 (261.8%). The third and final target may be predicted at 1.31171 (423.6%).
If the 1.25020 support level is broken, the anticipated price targets are annulled and must be re-evaluated.
As long as bulls maintain a positive sentiment and demand overcomes supply, the Loonie on the Daily time frame will advocate a bullish scenario.
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.