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USD/CAD: technical analysis 03.01.20

Current trend

USD/CAD is in the stage of upward correction after falling to the level of 1.29766, but the general downward trend is still maintained. The breakdown of 1.29700 and the pair’s sustained trading below this level will be a signal for downward trend resumption and let the price fall to the area of 1.29505-1.29395 support.

Alternative scenario

If the "bulls" manage to raise the rate above the level of 1.30005, the correction can continue to the area of 1.30227 resistance. This level is coincided with the middle line of Bollinger Bands and can activate a downward rebound. However, the decisive break of 1.30310 is needed to indicate the upward trend resumption. In this case, the next targets of buyers will be the level of 1.30615.

Technical indicators

Technical indicators maintain a sell signal.

Bollinger Bands and Stochastic are pointed downwards.

MACD volumes are slowly decreasing in the negative zone, but still keeping a sell signal.

Support and resistance

Support levels: 1.29700, 1.29505, 1.29395.
Resistance levels: 1.30005, 1.303010, 1.30615.

Trading recommendations

Short positions can be opened below the level of 1.29700 with the target at around 1.29505-1.29395 and stop-loss at 1.29801.
Long positions can be opened above the level of 1.30005 with the target at around 1.30310 and stop-loss at 1.29903.

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