The USD/CAD currency pair, on the H4 time-frame, has been in a downward move from the 28th of March. Buyers briefly succeeded in breaking the Sellers’s momentum but supply again overwhelmed demand after top was recorded on the 5th of April at 1.34028. The price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke the zero baseline. Two strong bearish candles as well as a subsequent cross of the 15 and 34 Simple Moving Averages, called Death Cross, confirmed the possible continuation of the downward momentum.
A critical support level formed after a lower bottom was recorded at 1.32855 on the 9th of April but as usual the bulls temporarily managed to push prices higher with a possible lower top that was recorded at 1.33399 on the next day.
If the price of the USD/CAD currency pair breaks through the critical support level at 1.32855, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the bottom of the possible continuation at 1.32855 and dragging it to the top of the possible pullback at 1.33399, the following targets may be calculated. The first target can be anticipated at 1.32519 (161 %). The second price target can be projected at 1.31976 (261.8%) and the third and final target may be expected at 1.31097 (423.6%).
If the top at 1.33399 is broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the USD/CAD currency pair on the H4 time-frame will remain bearish.
A critical support level formed after a lower bottom was recorded at 1.32855 on the 9th of April but as usual the bulls temporarily managed to push prices higher with a possible lower top that was recorded at 1.33399 on the next day.
If the price of the USD/CAD currency pair breaks through the critical support level at 1.32855, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the bottom of the possible continuation at 1.32855 and dragging it to the top of the possible pullback at 1.33399, the following targets may be calculated. The first target can be anticipated at 1.32519 (161 %). The second price target can be projected at 1.31976 (261.8%) and the third and final target may be expected at 1.31097 (423.6%).
If the top at 1.33399 is broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the USD/CAD currency pair on the H4 time-frame will remain bearish.