USD/CAD Price Analysis – June 29
Further increase in the bulls’ pressure may break up the resistance level of $1.24 and the upside target levels could be $1.25 and $1.26 levels.
USD/CAD Long-term Trend: Bearish (Daily Chart)
Resistance Levels: $1.26, 1.27, $1.28
Support Levels: $1.22, $1.21, $1.20
USD/CAD is bullish on the long-term outlook. At the beginning of this month, USD/CAD commences bullish trend where the bearish momentum placed the price at the support level of $1.20. On June 18, a bullish engulfing candle emerged; this bullish reversal signal made the bulls propel the price to break up the resistance levels of $1.24. The level could not hold the price but rather penetrated and the price is exposed to the support level of $1.23.
USD/CAD Price Analysis: Can this be a Pullback?
According to the daily chart, the 9-day and 21-day moving averages are separated and the price is trading above the two moving averages; which indicates that the momentum of the buyers is increasing. However, further increase in the bulls’ pressure may break up the upper boundary of the channel and the upside target levels could be located at the resistance levels of $1.24 and $1.25.
Furthermore, in case the bulls increase their momentum over the bears, the upside target levels could be located at $1.26, $1.27, and $1.28. However, the Relative Strength Index (14) is moving above 60-level with the signal line pointing up which indicates a buy signal. On the contrary, if the bears were able to break down the support level of $1.23 and the daily candle close below the 9-day moving average, it will decrease the price to $1.22 support level; the further decrease may likely push the currency pair to the support levels of $1.21 and $1.20 respectively.
USD/CAD Medium-term Trend: Bullish (4H Chart)
USD/CAD is on the bullish movement on the 4-hour chart. The bullish trend continues above the 9-day and 21-day moving averages as the Relative Strength Index (14) prepares to move into the overbought zone. However, if the bulls push up the market price to test the resistance level of $1.245, USD/CAD could touch the potential resistance at $1.248 and above.
On other hand, if the currency price slide below the 9-day and 21-day moving averages, this may cause the price to cross below the lower boundary of the channel and open the door to the support level of $1.232 and below.