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USDCAD Daily tf analysis:The road ahead

My previous post calling for a bullish move in the USDCAD can be found here. Numbers indicated on the USDCAD chart (Daily timeframe) are discussed below:

USDCAD chart used for technical analysis

(1) This is the price channel (also shown in the previous post) that the USDCAD has recently broke out of. Price slightly dipping back below the top of the price channel is something to pay attention to moving forward as the channel is still relevant in progression of the USDCAD.

(2) New price channel shown in dotted pink lines. This is used in this analysis to capture another price channel that is currently active for the USDCAD.  Further movement in price upwards means that this channel will prove useful in projecting a price level where the USDCAD might encounter selling (resistance). This is facilitated with the use of the vertical pink line = width of the new price channel.

(3) Current trendline for the USDCAD (in black color) that has been active April 18, 2018. The trendline is expected to offer support for the USDCAD should selling continue. Lower support on a break below the trendline would be the bottom of the new channel.

(4) The MACD (Moving average convergence divergence). Initiation of a long position (buy) would need to be delayed as the MACD line is currently below the signal line = bearish and also both lines maintaining a negative slope as at the time of this post.

Failure of price at the bottom of the new channel implies that the USDCAD could test the bottom of channel labeled (1) at ~1.25131.

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