24.11.202320:15 Forex Analysis & Reviews: Technical analysis on USD/CAD on November 24, 2023

Overview :

The USD/CAD pair broke resistance which turned to strong support at the level of 1.3578 yesterday. The level of 1.3578 coincides with a golden ratio (38.2% of Fibonacci), which is expected to act as major support today. The Relative Strength Index (RSI) is considered overbought because it is above 30. The RSI is still signaling that the trend is upward as it is still strong above the moving average (100).

The USD/CAD pair is continuing in a bullish market from the support levels of 1.3502 and 1.3578. Also, it should be noted that the current price is in a bullish channel. Equally important, the RSI is still signaling that the trend is upward as it is still strong above the moving average (100) since yesterday.

Immediate support is seen at 1.3578 which coincides with a golden ratio (38.2% of Fibonacci). Consequently, the first support sets at the level of 1.3578. So, the market is likely to show signs of a bullish trend around the spot of 1.3578/1.3502. It is also worth noting that the price at 1.3502 will possibly form a strong support.

This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend. The level of 1.3784 will act as strong resistance and the double top is already set at the point of 1.3898.

In other words, buy orders are recommended above 1.3578 with the first target at the level of 1.3639. From this point, the pair is likely to begin an ascending movement to the point of 1.3700 and further to the level of 1.3784.

On the other hand, if a breakout happens at the support level of 1.3502, then this scenario may become invalidated.

Forecast :

According to the previous events, the USD/CAD pair is still moving between the levels of 1.3502 and 1.3784; for that we expect a range of 282 pips (1.3784 - 1.3502) in coming days.

If the USD/CAD pair fails to break through the resistance level of 1.3700, the market will decline further to 1.3502. This would suggest a bearish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.3308 with a view to test the daily pivot point.