The U.S. and Canada are taking their rivalry off the ice and straight into the charts.
USD/CAD is urgent up in opposition to a serious resistance zone. Will the greenback hold its weeks-long rally alive?
Or will Loonie merchants strike again and defend this ceiling like it’s Finals additional time?
USD/CAD 4-hour Foreign exchange Chart Sooner with TradingView
Stronger-than-expected mid-tier and labor-related knowledge have nudged merchants again towards the U.S. greenback, restoring a few of its safe-haven enchantment as geopolitical tensions linger.
On the identical time, agency crude oil costs are placing a ground underneath the Canadian greenback, serving to cap USD/CAD’s upside and preserving the pair from operating too far too quick.
Keep in mind that directional biases and volatility circumstances in market worth are sometimes pushed by fundamentals. Should you haven’t but finished your fundie homework on the U.S. greenback and the Canadian greenback, then it’s time to take a look at the financial calendar and keep up to date on each day elementary information!
USD/CAD has been grinding increased since mid-February and is now testing the 1.3700 psychological deal with. That stage traces up with the 4-hour 200 SMA, the R1 at 1.3724, and the vary resistance that has held since late January.
It additionally sits simply beneath a longer-term development line resistance, which may additional cap shopping for strain if greenback bulls run out of steam.
If we see clear bearish candlesticks and a agency rejection round 1.3700, the pair may ease again towards the 1.3600 mid-range space, with a deeper pullback exposing the 1.3500 vary help zone.
On the flip aspect, if momentum from the previous few weeks carries via, a clear break above 1.3700 would put USD/CAD on monitor to problem increased inflection factors past the longer-term development line, together with 1.3800 and probably 1.3850.
Whichever bias you find yourself buying and selling, don’t neglect to apply correct threat administration and keep conscious of top-tier catalysts that might affect general market sentiment.
Disclaimer:
Please bear in mind that the technical evaluation content material offered herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one facet of a complete buying and selling technique. The technical setups mentioned are meant to spotlight potential areas of curiosity that different merchants could also be observing. Finally, all buying and selling selections, threat administration methods, and their ensuing outcomes are the only real accountability of every particular person dealer. Please commerce responsibly.
Promoted: The Evaluation & Technique are solely half the Battle; Your Mindset is the Relaxation.
In the present day’s chart artwork highlights USD/CAD’s main resistance zone. However as any professional will let you know, an excellent setup can nonetheless fail if the dealer lacks the self-discipline to execute round it nicely.
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