In the early hours of the American session, the USD / CAD pair is trading above the SMA of 21, the EMA of 200 and above the ascending triangle, after having broken sharply on Friday. Now we foresee a correction until the 21 SMA area around 1.2106.
The target of the triangle pattern is the 1.23 area, the measure of the size of the base. It will be the pair's final target. So, as long as the USD / CAD pair remains above this technical pattern, we will continue to buy.
Since May 13, the USD / CAD pair has been consolidating above the psychological level of 1.20. Now it is located in a zone of a probable change in trend, and it could rise to the resistance zone of 5/8 of murray at 1.2329.
Short-term support moves to the triangle breakout point at 1.2106. If USD / CAD makes a technical bounce above this zone, the bullish outlook will remain intact and the pair could continue its upward cycle.
On the contrary, we don't rule out a break below 1.2085 where the 3/8 of murray is located, which is also a zone of strong support. If it is broken, the bias will quickly become bearish again and the price could fall to the psychological zone of 1.20.
Investor sentiment for today Monday June 14 shows 73.03% of traders are buying USD / CAD. This may be a sign that in the short term the pair may make a correction to the 1.21 area. The technical reading of the eagle indicator is showing a sign of overbought market conditions.
Support and Resistance Levels for June 14 – 15, 2021
Resistance (3) 1.2234
Resistance (2) 1.2195
Resistance (1) 1.2165
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Support (1) 1.2098
Support (2) 1.2040
Support (3) 1.2009
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Trading tip for USD/CAD for June 14 - 15, 2021
Sell below 1.2163 (Strong resistance), with take profit at 1.2106 (SMA 21) and 1.2085 (3/8), stop loss above 1.2195.
Buy if rebound around 1.2106 (SMA 21), with take profit at 1.2160 and 1.22207(4/8), stop loss below 1.2075.
