The USDCAD is now close to the daily support level. After made a huge Bullish Engulfing Bar in early May, the price then grinding higher, broke off the daily resistance (turn into support) level and recently made a pullback and try to retest the (new) support level. Even though in the long run the pair still in the downtrend, recent upward movement on USDCAD should be really considered since the price already broke off the area around 1.2965.
In my opinion, this level is solid since the price has been ‘respected’ this level several times either as the support or resistance level. On the 4-hour chart below, we can see that price already made a new higher-high in the 1-2-3 pattern, which show some bullish momentum.
If the support level can hold and continuing their recent momentum, there is an opportunity that the price could go higher. From here, I will start hunting for an opportunity to go long. I will keep my eye on, not only on the daily chart but also intraday time frame like the 4-hour chart.
USDCAD daily chart – zoom out
USDCAD daily chart – zoom in
USDCAD 4-hour chart