Friday, July 31, 2020

Bullish Setup On USDCAD

Marco Tosoni

FХ Strategist & Financial Commentator

After a strong bullish rally that brought the prices towards 1.4700 area, since the second half of March a very intense bearish cycle began pushing the quotes to fall around 1.3300 area testing the previous resistance area set on December 2019, with a double bottom formation built during the last two months.

In the first part of this week, this pair has consolidated around the major support area, while on yesterday’s session we had a first convincing rise, with a closure around 1.3410 area after setting a daily top nearby 1.3450 area.

Looking at the RSI indicator, we can detect a new bullish setup with a short-term divergence, that in combination with the support around 1.3300 area, could favour a bounce of the US dollar with the chance to reach the previous resistance set during the month on June.

The setup would be activated in case of a breakout of yesterday’s top, around 1.3480 area. The stop loss must be placed at 1.3280 below the weekly bottom, while the target price can be expected nearby 1.3680 area around the double top formed on last June.

As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.

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