USD/CAD Breaks Neckline As Double Bottom Pattern Weighs

FXOpen

USD/CAD faces rejection ahead of the 1.1000 handle after a major bullish reversal earlier this week. The sentiment remains extremely bullish due to Higher Low (HL) in the recent correction phase. Moreover, the double bottom price pattern is also keeping the pair under bullish momentum, eyeing the 1.1050 resistance area.

Technical Analysis

As of this writing, the pair is being traded near 1.0938. A major support can be noted around the current level which is the neckline of the double bottom price pattern. Not to mention, the pair has already broken the neckline which is considered a confirmation signal for the authenticity of the price pattern among traders.

usdcad-

On the upside, the pair is expected to face a hurdle near 1.0956, the high of the ongoing week ahead of 1.1019, the 23.6% fib level and then the 1.1050 resistance area. The sentiment will remain positive as far as the double bottom support area is intact.

Canada Purchasing Managers Index

Richard Ivey School of Business is due to release the Purchasing Managers Index of Canada today. According to the median projection of different economists, the PMI increased to 56.0 points in May as compared to 54.1 points in the month before, better than expected actual outcome will be seen as moderately bearish for USD/CAD and vice versa.

US Jobless Claims

 The US labor department will release the initial jobless claims figure for the week ended on 31 May. According to the average forecast, the number of people who claimed jobless incentives during the said time rose to 310K as compared to 300K in the week before, better than expected actual reading will be seen as bullish for the pair and vice versa.

Conclusion

Considering the overall technical and fundamental outlook, buying the pair around the neckline support area appears to be a good strategy with a potential target around the swing high of the last major rally. 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.