USD/CAD Aims for 1.40000 With Multiple Bull Signals

9 окт. 2023 г.

USD/CAD made an attempt to break out of the bear channel last week with a high of about 1.37850 before pulling back to a close around 1.36600. The weekly candle closed below the bear channel top and so far this week, we've fallen another 100 pips to the weekly 9EMA around 1.35600. What does this mean for the bulls?

The bulls have a pretty solid picture ahead if the price can remain above the Weekly EMA ribbons. Combine that datapoint with the RSI above the MA with room to move up and last weeks show of force above the bear channel/bull flag, I vote in favor of the bulls. We would then be looking for a follow-up bull bar closing above the high of the bear channel to confirm a breakout. Then look for price targets around the channel high of 1.40000

In the alternative universe where the price falls below the EMA ribbons and the weekly bar closes near its low, that would act as a confirmation of a short. Price targets could head back down to the Monthly support line of 1.32800 where we would need to reassess the price action.

Let me know what you think!