FX.co ★ Technical analysis of USD/CAD for May 16, 2018

The USD/CAD pair has risen from the level of 1.2728 towards 1.2867 this week. Now, the current price is set at 1.2870. On the H1 chart, the resistance is seen at the levels of 1.2894 and 1.2939. Besides, the weekly support 1 is seen at the level of 1.2791. Today, the USD/CAD pair is continuing to move in a bullish trend from the new support level of 1.2830, to form a bullish channel. Amid the previous events, we expect the pair to move between 1.2830 and 1.2939. Therefore, buy above the level of 1.2830 with the first target at 1.2894 in order to test the second resistance and further to 1.2939. Nevertheless, if the pair fails to pass through the level of 1.2939, the market will indicate a bearish opportunity below the level of 1.2939. The market will decline further to 1.2862 in order to return to the weekly pivot point. Additionally, a breakout of that target will move the pair further downwards to 1.2728 with a view to test the double bottom on the H1 chart.

Comment:

• The weekly pivot is seen at the level of 1.2862.
• The market is still in an uptrend. We still prefer the bullish scenario as long as the price of 1.2830 is not broken.