- USD/CAD is trading 0.30% lower ahead of the NFP data on Friday.
- There is a 20 pip range of support at 1.3240 that looks strong.
USD/CAD 4-hour chart
USD/CAD has been trendline lower in recent session but the price is heading towards a firm support area between 1.3240 and 1.3260. There are multiple technical factors to consider at the moment that seem to be supporting the long trade.
The Relative Strength Index is making a bullish failure swing pattern. This is when the price makes a higher low but the indicator makes a lower low. Often the indicator moves into oversold territory and in this case, it is pretty close.
There is also the 38.2% Fibonacci retracement zone in close proximity to the current price level. Adding to this, the red upward sloping trendline could also be a good support zone and if the price does move lower it could come into play.
Lastly, the zone has been used seven times on the 4-hour chart and this illustrates its importance as the price heads to the area. Sometimes certain prices act like magnets for the price and this seems to be one of those zones.
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