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USD/CAD: technical analysis 03.10.2019

Current trend

On 4-hour chart, the instrument is correcting down after testing 1.33346 resistance level. If the current trend maintains, USD/CAD will reach the 1.33057 (Murray [8/8]) support line. There is a chance of an upward rebound, while its breakdown would allow the fall to continue to the area of 1.32904 (Murray [7/8])-1.32751 (Murray [6/8]). Alternative scenario. If the "bulls" manage to raise the rate above the level of 1.33271, the growth can continue to the area of 1.33362 (Murray [+2/8]). The level of 1.33362 seem a strong resistance area which can activate a price reverse. Meanwhile, the breakout and pair’s sustained trading beyond this level could set 1.33500-1.33600 mark on buyers’ radar. Technical indicators mostly keep a buy signal, but the downward correction is possible in the short term. Bollinger Bands are diverging on the background of bullish momentum. The volumes of MACD histogram are growing in the positive zone. Stochastic is in the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 1.33057, 1.32904, 1.32751.
Resistance levels: 1.33209, 1.33362, 1.33600.

Trading recommendations

Long positions can be opened above the level of 1.33362 with the target at around 1.33600 and stop-loss 1.33282.
Short positions can be opened below the level of 1.33057 with the target at around 1.32751 and stop-loss 1.33159.

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