USD/CAD:Heading South by taking the support of uptrend line

Aug 17 , 2018

 

By observing the daily technical chart we can see that earlier pair was making successively higher highs and higher lows by taking the support from an uptrend line. But after arriving 1.3380 level it stopped and  slipped down to 1.3012 level. But bulls managed their self as the mentioned uptrend line is still valid and providing strength to the bulls. A daily closing above the 1.3380 level will open the way towards the 1.3450 and 1.3500 level in near term and the forming of swings indicates that this is going to be happen in near term.

 

From technical prospective we can see that the balanced demand & supply is going on in the pair it seems like pair is forming rounding bottom pattern on the daily technical chart which is an early signal for buyers.The formation of candles above the moving average line is generating bullish signal.

 

 

 

 

The bullish engulfing candlestick followed by bullish marabuzo candlestick is generating bullish signal and it’s just  a starting the further bounce is still expected. Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 1.3000 level.The way bulls  are reacting it seems like they are appraoching the 1.3380 level in short term.

 

 

The RSI along with MACD indicators  are also favoring the bullish sentiments. A bullish divergence on RSI indicator is providing clear confirmation of trend reversal signal. The 1.2921 level is the key support level followed by 1.2850 level where as 1.3350 level is the key resistance level followed by 1.3450.

 

 

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