USD/CAD Price Analysis: Bulls looking for an upside breakout
|- USD/CAD bulls are stepping in and looking for a significant correction from weekly support.
- Hourly resistance has been broken, daily support has been established.
USD/CAD is shaping up for a bullish bias according to the confluence of recent hourly price action, a break of key structure and the daily and weekly chart outlooks.
The following illustrates the bullish bias from a daily perspective taking into account the market structures on various time frames.
1-hour chart
The hourly conditions are bullish with the move from overnight taking out what was presumed to be a critical level of resistance.
Instead, sellers gave way to the bulls and the area would now be expected to act as an area of support on a retest.
Daily chart
The daily chart shows that the price has corrected last week to what is expected to hold as a support area with the 61.8% aligned with the prior resistance looking left.
An upside breakout will be on the cards at this juncture so long as support holds.
This is in line with the hourly moves of late as well as with the weekly outlook where the price has stalled, consolidated and now has a higher probability of moving higher.
Weekly chart
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