USDCAD Analysis 10/05/2023

US DOLLAR / CANADIAN DOLLAR H4 Time Frame

Major Trend = Ranging
Minor Trend = Downtrend

Nearest Support Area = 1.32600-1.33100
Nearest Resistance Area = 1.35050-1.35445

Overall Bias = Short (Possible Reversal Soon)
Short Term Target = 1.32600-1.33100
Ideal Target = 1.35050-1.35445
Invalidation Level = 1.32295

Notes :
Moving onto another USD pairing, USDCAD have been in a prolong range bound market since late 2022 where currently price is nearing its lower range & major support zone. Another potential reversal sign is if we look to the left a bit we can see that price has finished its double top pattern target.

Our 1st Main & "Ideal" Scenario is the black paths where price will soon find buyers near its major support and start rallying back up above the 1.35000 mark. This scenario is still valid as long as price stays above 1.32295.

The 2nd "Worst Case" Scenario is the red paths where price could instead break down below its major support and start a strong downwards trend with an ideal target around 1.30000-1.30580.

Side note that today the US will also be publishing its Inflation Rate YoY Data which is expected to be around 5% (same as previous months), depending on the actual results price could spike quite aggressively so expect some volatility later on.