USDCAD Technical Analysis on H2 Chart for May 17, 2024

Greetings, dear traders. Today, we are here with the USDCAD technical analysis. Let’s delve into the analysis without wasting any time.

USDCAD Technical Analysis on H2 Chart for May 17, 2024

USDCAD Technical Analysis on H2 Chart for May 17, 2024:

⚡️ On the H2 chart, USDCAD has formed a descending wedge pattern, which is typically considered a bullish reversal signal. The price has successfully broken through the upper trend line of this wedge, indicating potential upward momentum. Additionally, the momentum oscillator shows a rise above the 100.0 level, reinforcing the likelihood of a continued short-term bullish trend.

🔍 Analyzing the technical indicators further, the Relative Strength Index (RSI) is also moving upwards, supporting the bullish outlook. The Moving Average Convergence Divergence (MACD) histogram is displaying positive values, and the MACD line has crossed above the signal line, both of which are bullish signals.

🔼 Trade Recommendation: Buy USDCAD on a confirmed breakout above the 1.3640 level. This breakout point has been identified as a significant resistance level, and surpassing it could lead to further price increases.

🎯 Target Price (TP): Set your target price at 1.3690. This level is based on previous resistance zones and aligns with the projected price movement derived from the wedge pattern.

📉 Stop Loss (SL): To manage risk, consider setting a stop loss below the recent swing low, around 1.3600. This provides a balanced risk-reward ratio, protecting against potential downside while allowing room for the trade to develop.

By closely monitoring these indicators and levels, traders can capitalize on the bullish potential of USDCAD, aiming for a profitable trade setup in the current market conditions.

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