- May 3, 2021
- Posted by: cabana-admin
- Category: forex trading, Market Insights
General overview: USD/CAD failed to extend the previous day’s corrective pullback despite recent bounce off intraday low. USD/CAD fails to extend Friday’s corrective pullback, attacks support line of a bearish chart formation. Receding bullish bias of MACD, sustained trading below key HMAs favor sellers. The pair is remaining depressed around below 1.2275. The pair formed the bearish zone in the chart and stand towards the selling side .The market is forming downward slope as the downside trend line formed on daily chart. The pair makes bearish signals in the chart and shows low volatility in the market. USD/CAD stays on the bear’s radar. However, a clear break below the recent low of 1.2266 becomes necessary to confirm the bearish chart pattern, namely ‘double top’.
Technical overview: From the technical point of view for that we can say that market is providing selling signals to traders. On 4 the hourly chart market is creating potential rounding top and leads towards the selling side in the market. On the daily chart the market is creating downside strong trend the more downfall can be expected. The positional traders can take their trade towards the sell side in the market. The pair is getting support from the 200 SMA and 50 EMA lines for more bearish confirmation in the market. The market selling level can be reach till 1.2290 levels. The indicator is also moving towards the bearish side in the market as the RSI and MACD is also leads towards the bearish side in the market. The support level is 1.2245 followed by 1.2195 and resistance level will be 1.2345 followed by 1.2395.
Trade idea: Our traders will sit towards sell side below 1.2295 target will be 1.2225 -1.2185 stop loss will be 1.2365