USD/CAD H4 – Buyers might be willing to enter the market
The USD/CAD currency pair, on the H4 time-frame, was in a downtrend until the 10th of September when a lower bottom was recorded at 1.31340. Demand overcame supply with a Strong Bullish Candle pushing the price past the previous lower top.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 1.31582 and 1.31340. This could have alerted technical traders to a possible technical reversal in the making.
After the bottom at 1.31340 the price broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator broke through the zero baseline into positive terrain. This further confirmed the possible price reversal or initial stages of a new trend.
A possible critical resistance level formed when a higher top was recorded on the 11th of September at 1.32153. Sellers are currently trying to push the market lower but the price seems to be getting support from buyers near the 34 Simple Moving Average.
If USD/CAD breaks through the critical resistance level at 1.32153, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.32153 and dragging it to a possible support level situated just below the 34 Simple Moving Average at 1.31747, the following targets may be calculated. The first target can be anticipated at 1.32404 (161 %). The second price target can be predicted at 1.32810 (261.8%) and the third and final target may be expected at 1.33467 (423.6%).
If the support level at 1. 31747 is broken, the possible scenario is annulled and will need to be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes 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.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 1.31582 and 1.31340. This could have alerted technical traders to a possible technical reversal in the making.
After the bottom at 1.31340 the price broke through the 15 and 34 Simple Moving Average and the Momentum Oscillator broke through the zero baseline into positive terrain. This further confirmed the possible price reversal or initial stages of a new trend.
A possible critical resistance level formed when a higher top was recorded on the 11th of September at 1.32153. Sellers are currently trying to push the market lower but the price seems to be getting support from buyers near the 34 Simple Moving Average.
If USD/CAD breaks through the critical resistance level at 1.32153, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.32153 and dragging it to a possible support level situated just below the 34 Simple Moving Average at 1.31747, the following targets may be calculated. The first target can be anticipated at 1.32404 (161 %). The second price target can be predicted at 1.32810 (261.8%) and the third and final target may be expected at 1.33467 (423.6%).
If the support level at 1. 31747 is broken, the possible scenario is annulled and will need to be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes 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.