The USDCAD leaves a false breakout above the 1.3300 level and drops below that zone. The pair may now try to pullback to the 1.3200 level, but if it goes back up, above the 1.3300 level, then its next resistance could be the 1.3387 level.
¿Shooting star on the USD/CAD? The USD/CAD breaks above the 1.3387 level and leaves behind a false breakout on the daily chart, forming what it appears to be a shooting star pattern. The shooting star is a bearish reversal pattern and it is confirmed when the next candles is bearish. The long upper shadow that we see on a shooting star formation is indicating that the sellers have taken control of the market. If the price of the USD/CAD continues dropping, then the 1.3300 level may act as support. Below the 1.3300 level, the 1.3200 and the 55 day EMA may also act as support. On the other hand, if the pair breaks above the 1.3387 level, its next resistance could be the 1.3500 level.
Higher lows on the USD/CAD. The USD/CAD has been making higher lows on the daily chart and it seems like the bullish pressure is accumulating around the 1.3445 level. The USD/CAD may break to the upside, but a bullish breakout can only be confirmed above the 1.3500 level. The 55 day EMA is showing us that the bullish trend is still in place, but the pair may try to pull back to the downside. Below the bullish trendline, the 55 day EMA around the 1.3231 level could act as support. Below the 55 day EMA, its next support could be the 1.3100 level followed by the 200 day EMA.
Bullish breakout on the USD/CAD. The drop in oil has pressured the Canadian Dollar to the downside and that is why we see the USDCAD heading higher, even though the greenback has also rallied on its own merits. Yesterday we saw that the daily lows of the USDCAD were higher than the previous ones and that was a sign that the bullish pressure was accumulating around the 1.3445 level. Today the price breaks above the 1.3445 level and reaches the 1.3500 zone which could act as resistance. Above the 1.3500 level, its next resistance could be the 1.3800 level. To the downside, in case of a pullback, the most important support is at the 55 day EMA around the 1.3231 level.