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USD/CAD: technical analysis 06.12.2019

Current trend

USD/CAD price is restoring after the fall to the level of 1.31603. At the moment the price has met the resistance at the level of 1.31836. The breakout of this level will give a prospect of growth to the level of 1.31989. The area of 1.31989-1.32018 seems a strong resistance area which can activate a downward rebound. Meanwhile, the decisive break of 1.32018 is needed to indicate uptrend resumption. In this case, the next targets of buyers will be the level of 1.32141-1.32294.

Alternative scenario

The pullback below 1.31683 could lead the price to 1.31531 support. There is a chance of an upward rebound, while its breakdown would allow the fall to continue to the area of 1.31347.
Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term. Bollinger Bands are pointed downwards. MACD histogram is in the negative zone keeping a signal for the opening of sell positions.
Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 1.31683, 1.31531, 1.31347.
Resistance levels: 1.31836, 1.31989, 1.32141.

Trading recommendations

Short positions can be opened below the level of 1.31683 with the target at around .1.31347 and stop-loss at 1.31795.
Long positions can be opened above the level of 1.31836 with the target at around 1.32141 and stop-loss at 1.31734.

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