# 1.35000 has been breached and it now may hold the price as support
# 1.40000 may work as a level of resistance
USDCAD made a very significant breakout at 1.35000. The H4 chart shows that the price produced consecutive H4 bullish candles and made the breakout with a bullish Marubozu candle. The price seems to be having a bearish correction. It may find its support at the breakout level. Thus, the buyers may wait for the price to produce a bullish reversal pattern at the level of 1.35000 to go long in the pair again. The chart shows that the price has enough space to travel towards the North. It may find its next resistance around 1.40000. Traders must remember that 1.40000 is probably the most important level around.
On the other hand, if the price breaches the level of 1.35000, the pair may get choppy for a while to find its next direction.
Considering the chart, it looks that the Bull may dominate in the pair.
# 1.40000 may work as a level of resistance
USDCAD made a very significant breakout at 1.35000. The H4 chart shows that the price produced consecutive H4 bullish candles and made the breakout with a bullish Marubozu candle. The price seems to be having a bearish correction. It may find its support at the breakout level. Thus, the buyers may wait for the price to produce a bullish reversal pattern at the level of 1.35000 to go long in the pair again. The chart shows that the price has enough space to travel towards the North. It may find its next resistance around 1.40000. Traders must remember that 1.40000 is probably the most important level around.
On the other hand, if the price breaches the level of 1.35000, the pair may get choppy for a while to find its next direction.
Considering the chart, it looks that the Bull may dominate in the pair.