USD/CAD is trading in the green on the H4 chart and it looks determined to reach new near-term resistance levels. The bulls have stepped in and they could push the pair higher if the USDX rebounds in the short term and if it recovers after the last day's drop.
The currency pair was into a major downside movement lately, but the price action has developed a Pin Bar into a support area, signaling that we may have an upside reversal on USD/CAD.
USD/CAD has found support on the S1 (1.3511) static support and now edges higher. The next targets are seen at the minor down channel's resistance, downtrend line, and at the weekly Pivot Point (1.3598) level.
A valid breakout above the near-term resistance levels will bring a buying opportunity in the short term, the down channel could represent a continuation pattern. USD/CAD has developed a Pin Bar on June 10, 2020, when it has registered only a false breakdown with great separation below the 1.3355 - 1.3344 support area and below the 78.6% Fibonacci level.
- USD/CAD Trading Tips
The Pin Bar could represent a reversal pattern, while the minor descending channel could be used as a continuation pattern, a valid breakout above the downtrend line, PP (1.3598), and above the 61.8% level will suggest buying, the next upside targets are seen at the R1 (1.3692), R2 (1.3779), and at the 50% levels.
A potential upside momentum, increase, could be invalidated only by a decline and a valid breakdown below the S1 (1.3511) level.
