The USD/CAD currency pair, on the H4 time-frame, was in a downward move until the 29th of October when a lower bottom was recorded at 1.30422. Demand then started increasing.
After the bottom at 1.30422 the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator breached the zero baseline into bullish terrain. A Strong Bullish Candle confirmed the sudden demand pressure. This established a possible price reversal or initial stages of a new trend.
A possible critical resistance level formed when a higher top was recorded on the same day at 1.31006. Currently sellers are trying to pull the price lower.
If the USD/CAD breaks through the critical resistance level at 1.31006, then three possible price targets might be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.31006 and dragging it to a possible support level at 1.30687, the following targets can be calculated. The first target was anticipated at 1.31203 (161 %). The second price target can be predicted at 1.31521 (261.8%) and the third and final target may be expected at 1.32037 (423.6%).
If the support level at 1.30687 is broken, the scenario is invalidated and must be re-evaluated.
As long as buyers maintain a confident attitude and demand overwhelms supply, the outlook for the USD/CAD currency pair on the H4 time-frame will remain bullish.
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.
After the bottom at 1.30422 the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator breached the zero baseline into bullish terrain. A Strong Bullish Candle confirmed the sudden demand pressure. This established a possible price reversal or initial stages of a new trend.
A possible critical resistance level formed when a higher top was recorded on the same day at 1.31006. Currently sellers are trying to pull the price lower.
If the USD/CAD breaks through the critical resistance level at 1.31006, then three possible price targets might be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.31006 and dragging it to a possible support level at 1.30687, the following targets can be calculated. The first target was anticipated at 1.31203 (161 %). The second price target can be predicted at 1.31521 (261.8%) and the third and final target may be expected at 1.32037 (423.6%).
If the support level at 1.30687 is broken, the scenario is invalidated and must be re-evaluated.
As long as buyers maintain a confident attitude and demand overwhelms supply, the outlook for the USD/CAD currency pair on the H4 time-frame will remain bullish.
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.