Technical Analysis – USDCAD Short Term Forecast

Hi Traders! USDCAD short term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the H4 chart here.

You can watch the video explanation of this idea here

USDCAD H4(4 Hours) Chart Analysis – Range, Heikin Ashi Candles

On the H4 chart, after the strong bearish move, the price is currently moving inside a range. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is respecting this range so far has reached the top of it, respected it and is bouncing lower. In addition to this, currently there are no signs opposing this bearish view. Also based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this bearish view.

 

USDCAD H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern

On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies here as well in downward moving market conditions so it basically reflects a bearish environment. Until this condition changes my view remains bearish here. In addition to this, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a flat correction is happening in the form of a range. So based on all this my view here is bearish and I expect the price to move lower further in the short term.

Technical Analysis & Forecast Summary

USDCAD H4(4 Hours) Chart Analysis 

• Range, Heikin Ashi Candles

USDCAD H1(1 Hour) Chart Analysis 

• Heikin Ashi Candles, Bearish Trend Pattern

Trading Tips

It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.

Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

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To your success,

Vladimir Ribakov
Certified Financial Technician

 

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