The USDCAD signals a long term bearish move for 5 months now. We last wrote about the pair late last month. Check the link for reference. https://fxsits.com/usdcad-falls-short/. This bearish move is due to the Canadian dollar gaining strength over the US dollar. The Canadian economy has been performing better for the last 5 months.
If we take a look at the Daily chart.We can see that price has found support at level 1.3049 .Looking further we also see how price has broken level 1.3142 which acted as a resistance in the previous post.We believe that if, the USDCAD price action continues its bullish momentum .We could see price trade above level 1.3142 .Thus level 1.3339 could be exposed.
This level will then act as our new resistance.If price manages to hold above level 1.3339. Then level 1.3499 will be exposed as well. Say for instance price breaks past these levels.We will be initially looking at a bullish trend continuation formation.
If the USDCAD trades below level 1.3142. Where it currently trades at the time of this writing .Chances are we will see price move back to it previous support at level 1.3049. In different case scenarios break below that level then leaving level 1.2959 exposed. However, we strongly believe the USDCAD signals a bearish movement in favor of the CAD as the Canadian economy to recovers during this pandemic time. For more information on entries and exits join our smart signals plans .
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