- The greenback bulls have strongly defended the lower boundary of the Rising Channel.
- The 20- and 50-EMAs are advancing firmly, which favors a bullish bias.
- A Double Distribution trading session will keep the loonie bulls on the backfoot.
The USD/CAD pair has witnessed a strong rebound in the Asian session after hitting a low of 1.2895. The asset is expected to display a bullish Double Distribution trading session as the asset has moved sharply higher after trading in a narrow range of 1.2896-1.2920. Early distribution has been completed, followed by an upside move and the greenback bulls will balance again at elevated levels.
The formation of a Rising Channel chart pattern on a four-hour scale signals an upside move in a specified channel. The upper boundary of the chart pattern is placed from April 13 high at 1.2676 while the lower boundary is plotted from April 21 low at 1.2460 The greenback bulls have displayed a firmer reversal after hitting the lower boundary of the above-mentioned chart pattern.
The 20- and 50-period Exponential Moving Averages (EMAs) at 1.2972 and 1.2938 respectively are scaling higher, which adds to the upside filters.
Also, the Relative Strength Index (RSI) (14) has sensed support from 40.00 levels, which indicates a firmer responsive buying action.
Investors should wait for a minor pullback around the 50-EMA at 1.2938 to initiate long entries. A bargain buy will send the asset towards the psychological resistance at 1.3000, followed by Thursday’s high at 1.3077.
On the flip side, loonie bulls could gain control if the asset drops below Friday’s low at 1.2893. This will drag the asset towards May 4 high at 1.2853. A downside move beyond May 4 high will send the asset towards the round level support at 1.2800.
USD/CAD four-hour chart
|Today last price||1.2975|
|Today Daily Change||0.0047|
|Today Daily Change %||0.36|
|Today daily open||1.2928|
|Previous Daily High||1.3049|
|Previous Daily Low||1.2893|
|Previous Weekly High||1.3077|
|Previous Weekly Low||1.2893|
|Previous Monthly High||1.288|
|Previous Monthly Low||1.2403|
|Daily Fibonacci 38.2%||1.2953|
|Daily Fibonacci 61.8%||1.299|
|Daily Pivot Point S1||1.2864|
|Daily Pivot Point S2||1.28|
|Daily Pivot Point S3||1.2708|
|Daily Pivot Point R1||1.302|
|Daily Pivot Point R2||1.3113|
|Daily Pivot Point R3||1.3177|
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