USD/CAD: technical analysis 23.05.2019

USD/CAD: technical analysis 23.05.2019

Current trend

On 4-hour chart, the instrument shows a positive dynamic. The price went up above the level of middle line of Bollinger Bands 1.3427 (Murray [4/8]) and can grow further to the levels of 1.3458 (Murray [5/8]). Assuming the pair’s ability to cross 1.3458 mark, the level of 1.3488 can be targeted if holding long positions. The downward trend will be restored after the price is set below the level of 1.3421, which is the middle line of Bollinger Bands. Additionally, pair’s sustained trading below this level could set the levels of 1.3397-1.3366 as next sellers target. Technical indicators reflect the maintenance of the upward potential. Bollinger Bands are diverging, reflecting the active development of the current trend. MACD histogram is ready to enter the positive zone and form a buy signal. Stochastic is in the overbought area and is pointed sideways.

Support and resistance

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

Trading recommendations

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.
Short positions can be opened below the level of 1.3421 with the target at around 1.3397-1.3366 and stop-loss 1.3432.