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USDCAD Technical Analysis – October-10-2023

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FxNews – In this comprehensive USDCAD market analysis, we delve into the intricacies of the USDCAD Daily, 4H, and 1H charts. Our aim is to provide you with an in-depth understanding of the current state of the USDCAD market analysis.

USDCAD Technical Analysis - October-10-2023

USDCAD Market Analysis

The USDCAD has seen a decline that extended below the middle line of the upward channel. Interestingly, it tested this broken middle line in today’s session. The RSI indicator is on the verge of flipping below the 50 line, which indicates the strength of the bearish bias that began last week.

usdcad market analysis

Taking a closer look at the 4H chart, we can gain a more detailed perspective of the USDCAD market analysis. The currency pair is currently trading within a declining channel and above the 1.3516 support area. The RSI indicator is distancing itself from the level 30. However, there’s an element of uncertainty in the USDCAD market from a technical standpoint. This is evidenced by a long wick candlestick pattern in the 4H chart and almost a hammer candlestick pattern just a candle before, which emerged at the bottom of the declining channel.

usdcad market analysis

To gain an even better understanding of the USDCAD market analysis, we turn our attention to the 1H chart. Here, we observe a bullish engulfing candlestick pattern and the RSI indicator attempting to flip above the 50 line.

So far in this USDCAD market analysis, we have gathered the following data:

  • Daily overview: Bearish
  • 4H overview: Uncertainty
  • 1H overview: Weak signs of bullish

USDCAD Market Analysis: Bullish Scenario

In conclusion, considering all factors mentioned in this technical analysis of USDCAD, we can propose two potential scenarios for this currency pair. The first scenario is bullish. In this case, for a bullish outcome to occur, it’s crucial for bulls to close above the declining channel. If this happens, there’s potential for the pair to rise and test the broken pivot at 1.367.

usdcad market analysis

USDCAD Technical Analysis

Bearish Scenario and Trading Signal

On the other hand, if bulls fail to break through the channel and a long wick candlestick pattern or a bearish engulfing pattern form, it would be advisable to enter a sell (short) position with risk around 1.363 and target at 1.3516 support area. This trade would offer a risk/reward ratio of 1 to 4, which is a decent approach for today’s USDCAD market analysis.

  • 10 October 2023
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