Pullback is being made
USD/CAD started an ascending wave on the 1st of June 2021. The rising wave could elevate the price more than 7.8 % until 20th of December and then the price started going through a descending phase. The price line broke below the support zone on 11th of January 2022, and after reaching to the dynamic support, is now having a retest of the broken support zone.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The price at the moment is on 1.26204 and is heading to the purple zone, which indicates the broken support zone. The green line below the price line shows the dynamic support that started forming on 20th of June 2021. The red line specifies the dynamic resistance that started forming on 20th of December. RSI at the moment is almost on 68 and MACD is showing a strong ascending wave on going. The purple area is of high importance and is expected to act as a resistance at the next encounter with the price line, as the area equals to the Flat line of the Icimoku cloud. Sellers can be waiting for the price line to reach to the purple zone and on seeing any selling signals being issued they can enter short positions. The target for the ascending wave could be considered on 1.2491 and 1.2396. Please consider that in case the price line breaks above 1.2705, The chance for an ascending wave would highly reduce.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.