The USD/CAD currency pair, on the H4 time-frame, was in a downtrend until the 12th of July when a lower bottom was recorded at 1.30181. The bulls found the price inviting and demand overcame supply.
After the bottom at 1.30181 the market broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator sliced through the zero baseline into bullish terrain. This confirmed the possibility of a technical trend reversal.
A possible critical resistance level formed when a higher top was recorded on the 16th of July at 1.30947. Sellers are currently trying to pull the price lower but if bullish pressure overcomes bearish pressure and the USD/CAD breaks through the critical resistance level at 1.30947, three possible price targets may be expected from there.
Attaching the Fibonacci tool to the top of the possible reversal at 1.30947 and dragging it to the bottom of a possible support level at 1.30441, the following targets may be considered. The first target can be anticipated at 1.31260 (161 %). The second price target can be predicted at 1.31766 (261.8%) and the third and final target may be expected at 1.32586 (423.6%).
If the support level at 1.30441 is broken, the possible scenario is invalid 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 1.30181 the market broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator sliced through the zero baseline into bullish terrain. This confirmed the possibility of a technical trend reversal.
A possible critical resistance level formed when a higher top was recorded on the 16th of July at 1.30947. Sellers are currently trying to pull the price lower but if bullish pressure overcomes bearish pressure and the USD/CAD breaks through the critical resistance level at 1.30947, three possible price targets may be expected from there.
Attaching the Fibonacci tool to the top of the possible reversal at 1.30947 and dragging it to the bottom of a possible support level at 1.30441, the following targets may be considered. The first target can be anticipated at 1.31260 (161 %). The second price target can be predicted at 1.31766 (261.8%) and the third and final target may be expected at 1.32586 (423.6%).
If the support level at 1.30441 is broken, the possible scenario is invalid 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.