Technical Analysis – USDCAD Buy Idea

USDCAD Forecast And Technical Analysis

Hi Traders! In today’s technical analysis post we are going to discuss about USDCAD buy idea. In this pair based on the multi-timeframe analysis method we are going to look for the evidences on three timeframes that is on the current trading timeframe and two timeframes higher, when we get evidences which supports our view on these three timeframes this makes the setup very reliable. Now lets start our analysis from the highest timeframe which will be the weekly chart here.

USDCAD W1 (Weekly) Chart Analysis – Bullish Trend Pattern, Strong Support Zone

On the weekly chart we had a bullish trend pattern that has formed, generally after a bullish trend pattern we may expect pullbacks to happen and then possible continuation to the upside. Currently it looks like the pullback that we were looking for is happening inside some sort of a range pattern. While measuring the fibonacci retracement levels  of this bullish trend pattern from the low at 1.20602 to the high at 1.36636 we have a strong technical support zone that has formed based on the 38.2% – 50% fibonacci retracement zone and the bottom of the range pattern. Currently the price has reached this zone, in addition to this the Stochastic Oscillator has also reached its extreme. We may now drop down to lower timeframes to see if we have evidences that supports this bullish view.

Technical Analysis - USDCAD Buy Idea



USDCAD H4 (4 Hours) Chart Analysis – Downtrend Line Breakout, Parabolic SAR

On the H4 chart we had a good downtrend line that has formed and the price which was respecting it so far has currently broken above it, retested it and is moving higher, we may consider this as an evidence of bullish pressure. Until this downtrend line breakout holds my view remains bullish here. In addition to this based on the Parabolic SAR the dots are below the price which we may consider as another evidence of bullish pressure. Everything looks good here for the bulls, we may now move to one timeframe lower, which will be our current trading timeframe H1 chart and see if its fits in this bullish view.

Technical Analysis - USDCAD Buy Idea



USDCAD H1 (1 Hour) Chart Analysis – Bullish Trend Pattern

The H1 chart fits in perfectly with the higher timeframes as we can see that the price which is moving higher has created a bullish trend pattern, we may consider this as an evidence of bullish pressure. Currently it looks like a pullback is happening, once the pullback completes itself we may then look for bullish setups with more bullish evidences (evidences could be in the form of candle stick patterns, false breaks, trend line breakout etc… supporting the bullish view) in order to start looking for the buys.

Technical Analysis - USDCAD Buy Idea

Technical Analysis & Forecast Summary

Lets recap and summarize the analysis we had so far:

USDCAD W1 (Weekly) Chart Analysis:

  • Bullish Trend Pattern, Strong Support Zone

USDCAD H4 (4 Hours) Chart Analysis:

  • Downtrend Line Breakout, Parabolic SAR

USDCAD H1 (1 Hour) Chart Analysis:

  • Bullish Trend Pattern

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Technical Analysis - USDCAD Buy Idea


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