USD/CAD: technical analysis 16.05.2019

USD/CAD: technical analysis 16.05.2019

Current trend

On 4-hour chart, the instrument shows a negative dynamic. Now the price is trying to consolidate below the strong support level of 1.3427 (Murray [0/8]). The breakdown of this level will let the price to fall to the area of 1.3397 (Murray [-1/8]) – 1.3366 (Murray [-2/8]). If the instrument cannot consolidate below the level of 1.3427 during short term period, it will begin to grow to the area of 1.3458 (Murray [1/8]), which coincided with the middle line of Bollinger Bands. Assuming the pair’s ability to cross 1.3458, the level of 1.3488 (Murray [2/8]) can be targeted if holding long positions. Technical indicators reflect the maintenance of the downward trend. Bollinger Bands are diverging, reflecting the active development of the current downward moving. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is in the oversold zone and is poited sideways.

Support and resistance

Support levels: 1.3427, 1.3397, 1.3366.
Resistance levels: 1.3458, 1.3488, 1.3519.

Trading recommendations

Short positions can be opened below the level of 1.3427 with the target at around 1.3397-1.3366 and stop-loss 1.3447.
Long positions can be opened above the level of 1.3458 with the target at around 1.3488-1.3519 and stop-loss 1.3438.