USD/CAD Is Testing the Support at 1.3000

USD/CAD reached the resistance at 1.3385 well over a month ago and after forming a shooting star candlestick and a double top on the daily time-frame, it bounced off from that level and continued moving to the downside. Yesterday the pair finally reached the support at 1.3000, which coincides with the (MA)89 indicator on the same time-frame and it is still testing that level. If it breaks out below it next target will probably be at 1.2950. A breakout below that support could lead to a further move to the downside towards 1.2880, which is the (MA)89 indicator again, but on the weekly time-frame.

USD/CAD Is Bullish

USD/CAD remains quite bullish after a relatively brief sideways consolidation between 1.2810 and 1.2860 which formed a spinning top candlestick on the daily time-frame. The pair broke out above 1.2860 today and continued rising, currently it is testing the next resistance at 1.2900. It is also important to point out that USD/CAD has broken out above the (MA)89 indicator on the weekly time-frame, which is at 1.2830. The move to the upside will probably continue once the pair breaks out above 1.2900 and next target will likely be around 1.2970. A breakout above that level could lead to a further move to the upside towards the last high at 1.3125.

USD/CAD May Start Retracing

The overall USD/CAD trend is obviously very bearish. That said, the pair has formed a hammer candlestick on the four-hour time-frame and a spinning top candlestick on the daily time-frame, both at the support at 1.2545, which is a relatively good signal that there may be some retracement to the upside before the pair continues falling. If there is, indeed, such a retracement, the pair will probably move to the upside towards 1.2640 or even towards 1.2700. On the other hand, if or rather when the overall bearish trend continues there will likely be a further drop towards the next target around 1.2500.