USDCAD

In last week’s we analysis we saw how the USDCAD pair broke out its consolidation. After that we saw price continue it’s bearish movement. The link can be used as reference. (https://fxsits.com/the-usdcad-breaks-consolidation/). The pair has found support and currently trades above support level 1.26956

USDCAD H4 chart 16 December 2020
USDCAD H4 chart 16 December 2020

Looking at the H4 and daily time frame. We see that level 1.28374 acted as a support level before price broke past it. It now acts our resistance level. If price retraces bullish and tests level 1.269574. In the up coming market sessions we could see price consolidate within Level 1.26956 and level 1.28374 before breaking out these level.

If price retraces bullish and breaks past the resistance level 1.28374 .Then we could see price move back to the next resistance level 1.30091 .But if price get doesn’t get past level 1.28374 however ,moves back to the recent support level 1.269556 and breaks. Then level 1.2552 will be exposed as our next target area. We still strongly belief that price action signals long bearish for the USDCAD pair in 2021.

USDCAD Daily chart 16 December 2020
USDCAD Daily chart 16 December 2020

NB: Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consider position sizing before entering a trade and manage your risk accordingly. Please read the risk warning before deciding to trade the markets.

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