On 4-hour chart, USD/CAD shows a negative dynamic.
The instrument is now testing the support level of 1.2878 (Murray [2/8]).
The breakdown of the level 1.2878 will let USD/CAD fall to the level of 1.2847 (Murray [1/8])-1.2817 (Murray [1/8]). There is a high chance of an upward rebound from the level of 1.2817.
If USD/CAD cannot consolidate below the level of 1.2878, it will begin to grow to the area of 1.2908 (Murray [3/8])-1.2939 (Murray [4/8]). This case scenario will be relevant in case of consolidation the price above the level of 1.2890 (middle line of Bollinger Bands).
Technical indicators reflect the maintenance of the downward potential.
Bollinger Bands are directed down.
Stochastic’s lines are pointed downwards.
MACD volumes are in the negative zone and are moving along the zero line.
Support and resistance
Support levels: 1.2878, 1.2847, 1.2817.
Resistance levels: 1.2908, 1.2939, 1.2970.
According to technical indicators, in the short term, short positions could be opened from the current level with the targets at 1.2847-1.2817 and stop-loss at 1.2898.
Long positions can be opened after the price rebound from the level of 1.2817 with targets at 1.2847-1.2878 and stop-loss at 1.2800.