Hi Traders! In today’s technical analysis post we have USDCAD forecast. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. As we do in every technical post we are going to perform the multi-time frame analysis on this pair in order to find the possible trading opportunities. Lets start our analysis now from the highest timeframe which will be the weekly chart here.
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USDCAD W1(Weekly) Chart Analysis – Bearish Channel
On the weekly chart the price is moving inside a bearish channel, this channel is formed by the highs and lows reaching parallel resistance and support zones. The price is respecting these two zones so far and it is currently nearing the top of this channel after bouncing from the bottom. The price still has room higher towards the top of this channel, we may now move down to the lower timeframes and see if we can find evidences supporting this bullish view.
USDCAD D1(Daily) Chart Analysis – Downtrend Line Breakout, Heiken Ashi Candles
Looking at the daily chart we can see that we had a good downtrend line that has formed and the price which was respecting it so far has broken above it, retested it with a false breakout and then it is currently moving higher, we may consider this as an evidence of bullish pressure. Also we don’t have any opposite evidences against this bullish view. Also based on the Heikin Ashi candles we can see that currently we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment, so until the condition changes my view remains bullish here. So the bottom line here is that the daily chart has evidences supporting our bullish view.
USDCAD H4 (4 Hours) Chart Analysis – Bullish Divergence, Higher Highs, Triangle Pattern
On the H4 chart we have multiple false breakouts with bullish divergence, then the price moved higher and has created higher highs which we may consider as evidences of bullish pressure. Currently the price is moving inside a triangle pattern and is respecting it so far. So until the bottom of this triangle pattern holds my view remains bullish here.
Technical Analysis & Forecast Summary
USDCAD W1(Weekly) Chart Analysis
- Bearish Channel
USDCAD D1(Daily) Chart Analysis
- Downtrend Line Breakout, Heiken Ashi Candles
USDCAD H4 (4 Hours) Chart Analysis
- Bullish Divergence, Higher Highs, Triangle Pattern
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