H4 Technical AnalysisH1 Technical Analysis
Hello dear friends. On Friday, the USD/CAD price was trying to stay below the 1.2590 resistance zone in the last US session, but sellers lost momentum, and the price accelerated again towards the 1.2725 resistance level. During the H4 time frame, the price support level is 1.2590, and the resistance level is close to 1.2750. Also, the 200 SMA is slightly below the 1.2590 support, and the price is likely to break this SMA line and fall further to the 1.2500 support level, which is the lowest monthly level. Technically, to break a solid rally price is necessary to break the critical resistance level of 1.2725. Because the price goes above 1.2625 resistance, it can put further pressure on the price, and the second target is around 1.2830 resistance. In addition, some additional shares could push the price to August 1.2945 high. Meanwhile, for next week's trade, we'll look at the H1 time frame.
During the H1 time frame, we have seen a significant increase in the price of USD/CAD. The price reviewed the low of 1.2590 during the US session on Friday. But the price is currently just above the 50 SMA line, and on Monday, we can expect the price to fall to 50 SMA before reaching the resistance level of 1.2730, which is close to the 1.2660 price level. While around the 1.2730 resistance, we can decide our next trade because if the price goes above the 1.2730 resistance, we can re-enter the market with the expected target near the 1.2830-1.2860 supply area. Meanwhile, additional pressure and some new developments in the US could push the dollar higher and push the price to an August 20 high.