USD/CAD: technical analysis and trading recommendations_06/28/2022

 
 
 
 
 
 
 
USD/CAD H1 Chart

Against the backdrop of the US dollar weakening today, the USD/CAD pair has reached an important support level 1.2827 (EMA200 on the 4-hour chart). However, no further decline has been observed so far, and the USD/CAD pair has moved to a correction, trying to return into the zone above the key support level 1.2840 (EMA200 on the weekly chart).

USD/CAD H4 Chart

In general, the positive dynamics of the US dollar remains, which is why we expect further growth of USD/CAD after its breakthrough to the zone above the level 1.2840.

USD/CAD D Chart

If our forecast is confirmed, then the breakdown of the important short-term resistance level 1.2908 (EMA200 on the 1-hour chart) will be a signal to increase long positions with long-term targets at resistance levels 1.3450 (Fibonacci level 23.6% of the downward correction in the USD/CAD growth wave from 0.9700 to the level of 1.4600), 1.3720 (local resistance level).

USD/CAD W Chart

In an alternative scenario, USD/CAD will break through the support level 1.2827 and fall to support levels 1.2740 (Fibonacci 38.2% of the downward correction in the USD/CAD growth wave from 0.9700 to 1.4600), 1.2725 (EMA144 on the daily chart). Breakdown of the key support level 1.2705 (EMA200 on the daily chart) will bring USD/CAD into the bear market zone.

Support levels: 1.2840, 1.2827, 1.2810, 1.2800, 1.2740, 1.2705

Resistance levels: 1.2908, 1.2960, 1.3000, 1.3070, 1.3100, 1.3450, 1.3720

Trading scenarios

Sell Stop 1.2790. Stop Loss 1.2880. Take-Profit 1.2740, 1.2700, 1.2600, 1.2550, 1.2520, 1.2460, 1.2400, 1.2290, 1.2165, 1.2010, 1.2000

Buy Stop 1.2880. Stop Loss 1.2790. Take-Profit 1.2908, 1.2960, 1.3000, 1.3070, 1.3100, 1.3450, 1.3720