USDCAD Analysis – May 18
USDCAD is trudging upward as the price seeks to break out from its triangle pattern. The triangle system was evenly contested, but the bulls always had the bias. Notwithstanding, the bears delivered the first blow by pushing the price to the downside of the triangle. However, the bulls used their strength to hold onto the market and cause a reversal. After that, the price is seen trudging to the upside of the triangle.
USDCAD Key Levels
Resistance Levels: 1.31810, 1.28980
Support Levels: 1.23000, 1.27200
USDCAD Long Term Trend: Bullish
The strength of the bulls has been on display since the middle of last year. However, the price was limited at 1.28980 while the bears kept pushing to higher low levels consistently. This enables the market to store momentum in consolidation. This is seen by the Momentum line, which oscillates back and forth around the zero level.
As the market edged closer to the tip of the triangle pattern, there was a stronger shuffle between bulls and bears. The bears had the first go by plunging the market below the triangle, but the bulls regained themselves to restore the price and set it on the path of a breakout. The currency pair is leveraging the middle line of the Bollinger Band to keep trudging upward.
USDCAD Short Term Trend: Bullish
The market predominantly has bullish momentum, as seen on the 4-hour Momentum chart. Nevertheless, after retracing briefly below the triangle’s upper frame, the price is now having difficulty bypassing it to go upward. This could lead to another retest of the lower frame before the market gains enough energy to re-break the 1.28980 upper triangle frame.
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