USDCAD → Chances of a trend change are increasing

20 nov 2023

USDCAD is not able to update local highs at the moment on the background of weakening DXY . The market is under pressure from the resistance, which may have a positive impact on the Canadian dollar.



On D1 the market is in a huge long-term range. There are several reasons for further medium-term decline:

• - false breakout of resistance
  
• - no opportunity to test the local maximum
  
• - retest of support and MA-50
  

On H4 a symmetrical triangle is forming on the background of the uptrend, the price intends to continue testing the support area, which may eventually lead to a breakout of the area, an attempt to change the trend and the beginning of a strong downward movement.
Support area, which can form an impulse: 1.3670 - 1.3657

Resistance levels: 1.3736, MA200
Support levels: 1.3670, 1.3657, 1.35745

High probability of support retest with the subsequent breakout of the area and the beginning of the fall. Targets are indicated on the chart, perhaps in the area of 1.3735 - 1.3650 will be formed high volatility and volumes. Consolidation below the area (after the retest) may serve as a signal

Regards R. Linda!