On 4-hour chart, USD/CAD is active falling and is approaching a support in the region of 1.3000 (Murray [5/8]).
Technical indicators reflect the active maintenance of the current downward trend.
Bollinger Bands are diverging.
MACD volumes are decreasing in the positive zone, showing the growth of sellers’ moods.
Stochastic’s lines are pointed downwards and are reaching the oversold area.
The upward trend will be restored after the price is set above the level of 1.3077, which is the middle line of Bollinger Bands.
In this case, the next targets of buyers will be the level of 1.3122 (Murray [7/8]).
Support and resistance
Support levels: 1.3000, 1.2939, 1.2878.
Resistance levels: 1.3061, 1.3122, 1.3200.
Short positions can be opened below the level of 1.3000 with the target at around 1.2939 and stop-loss 1.3020.
Long positions can be opened above the level of 1.3061 with the target at around 1.3122 and stop-loss 1.3040.