Hi Traders! USDCAD technical analysis and forecast is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. 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! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).
- 1 USDCAD D1(Daily) Chart Analysis – Bearish Hidden Divergence, Parabolic Sar
- 2 USDCAD H4(4 Hours) Chart Analysis – Strong Resistance Zone, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
- 3 USDCAD H1(1 Hour) Chart Analysis – Bearish Trend Pattern
- 4 Technical Analysis & Forecast Summary
- 5 Trading Tips
USDCAD D1(Daily) Chart Analysis – Bearish Hidden Divergence, Parabolic Sar
On the daily chart, the price which is moving higher has created a bearish hidden divergence between the first high that has formed on 6th May 2020 and the second high that has formed on 26th June 2020 based on the histogram of the MACD indicator which we may consider as evidence of bearish pressure. In addition to this based on the Parabolic Sar the dot is above the price which we may consider as another evidence of bearish pressure. We may now move down to lower timeframes and see if we can find evidences supporting this bearish view.
USDCAD H4(4 Hours) Chart Analysis – Strong Resistance Zone, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
On the H4 chart, we have a strong resistance zone that has formed based on the 61.8%(1.37146) fibonacci expansion level of the first wave. The price which was moving higher reached this strong resistance zone respected it, moved lower and broke below the most recent uptrend line. We also had a bearish divergence that has formed between the first high that has formed on 15th June 2020 and the second high that has formed on 26th June 2020 based on the moving averages of the MACD indicator. We may consider these as evidences of bearish pressure. In addition to this, the ADX indicator gave bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. So the bottom line here is that the H4 chart has evidences supporting the bearish view.
USDCAD H1(1 Hour) Chart Analysis – Bearish Trend Pattern
On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower lows, lower highs which we may consider as evidence of bearish pressure. So based on all these my view is bearish here and I expect the price to continue lower further after pullbacks.
Technical Analysis & Forecast Summary
USDCAD D1(Daily) Chart Analysis
- Bearish Hidden Divergence, Parabolic Sar
USDCAD H4(4 Hours) Chart Analysis
- Strong Resistance Zone, Bearish Divergence, Uptrend Line Breakout, ADX Indicator
USDCAD H1(1 Hour) Chart Analysis
- Bearish Trend Pattern
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