The USD/CAD currency pair, on the H4 time-frame, was in a down trend until the 9th of June when a lower bottom was recorded at 1.32380. Buyers found the price attractive and demand overcame supply.
After the bottom at 1.32380 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator broke the zero baseline into positive territory and there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. All of these confirmed a possibility technical price reversal.
A possible critical resistance level formed when a higher top was recorded on the 12th of June near 1.33459. Sellers tried to push the price lower but demand overwhelmed supply. A Hammer Candle formed on 13 June at 1.32983, confirmed a likely support level and strengthened the possible reversal even further.
If the USD/CAD breaks through the critical resistance level at 1.33459, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.33459 and dragging it to the support level at 1.32983, the following targets may be calculated. The first target can be anticipated at 1.33753 (161 %). The second price target can be predicted at 1.34228 (261.8%) and the third and final target may be expected at 1.34998 (423.6%).
If the bottom at 1.32983 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/CAD currency pair on the H4 time-frame will remain bullish.
After the bottom at 1.32380 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator broke the zero baseline into positive territory and there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. All of these confirmed a possibility technical price reversal.
A possible critical resistance level formed when a higher top was recorded on the 12th of June near 1.33459. Sellers tried to push the price lower but demand overwhelmed supply. A Hammer Candle formed on 13 June at 1.32983, confirmed a likely support level and strengthened the possible reversal even further.
If the USD/CAD breaks through the critical resistance level at 1.33459, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.33459 and dragging it to the support level at 1.32983, the following targets may be calculated. The first target can be anticipated at 1.33753 (161 %). The second price target can be predicted at 1.34228 (261.8%) and the third and final target may be expected at 1.34998 (423.6%).
If the bottom at 1.32983 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/CAD currency pair on the H4 time-frame will remain bullish.