USD/CAD: Bulls are moving in uptrend channel

May 21, 2018

 

After getting so much choppy sessions last week we have seen a bullish moves which mainted our bias as bullish on the pair. As base currency is USD so strong demand can be witnessed universally. Both bulls and bears are fighting with each other but seems like bulls have taken the advantage but we will get further bullish confirmation once pair trade above the 1.3000 level.

A uptrend channel can be witnessed in the daily technical chart which is generating bullish signal and bulls are appraoching the 1.3216 level in short term. Last week the weaker data compare to what we expected had led the pair at upward. In the coming week we have FOMC rate decision, if the FED provides signal of rate hike in the next couple of months and also hints of further rate hikes so we could see some further dollar strenght which may uplift the pair towards north side.

 

 

The pair is trading above all the major and minor moving averages and providing strength to bulls and RSI along with MACD indicators are also favoring the bullish sentiments. We should keep our bias bullish as long as 1.2721 level remains unbreached. The trading strategy should be Buy on Dips. The 1.2721 level is the key support level followed by 1.2650 level where as 1.3050 level is the key resistance level followed by 1.3150. Last week we have seen bullish marabuzo candlestick which is providing bullish signal however some correction can’t be ignored but that should be converted as buying opportunity.

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