- USD/CAD accumulation phase playing in the spot market.
- USD/CAD still has room to go until a test of the weekly support level.
The Canadian dollar (the Llonie) has been pressured vs the greenback due to the price of oil failing to conquer the $40 handle with conviction.
USD/CAD fallen, therefore, just shy of a key target on the longer-term charts and is making life difficult for bulls seeking to accumulate from the target.
The charts remain bearish judging by the weekly, daily and 4HR moving averages as well as MACD. However, there is a 4HR cup and handle in the making.
The following series of charts is a top-down analysis to demonstrate the technical picture:
Extended run to the downside, targeting key weekly support
As can be seen, the price has not completed a full test of weekly support structure where bulls will want to see a rejection from before committing to a long term long strategy.
Bulls looking to accumulate, await test of the critical support structure for two bullish targets
4 HR chart shows price is still in bearish technical conditions
The price is below the 21 4HR moving average as well as below the 200 DMA. MACD is also bearish. There are still prospects of a deeper run into accumulation territory.
Bullish Cup and Handle is menacing for patient bulls
As can be seen, the bullish Cup and Handle on the 4HR chart is painfully problematic for bulls looking for a test of the weekly support before committing to a long strategy.
Overall, bulls will look for a test of weekly support
Accumulation from weekly support will take a while to play out, potentially with a number of tests of support and resistance before a bullish breakout can occur.
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