USD/CAD: technical analysis 03.12.2019

Current trend

On the 4-hour chart, the instrument is correcting down from the upper line of the Bollinger Bands. The first target of the correction is the level of 1.32904, which corresponds to the middle line of Bollinger Bands. There is a high chance of an upward rebound, while its breakdown would be a signal for downward trend resumption and let the price fall to the 1.32751-1.32701 support.

Alternative scenario

The rebound from the 1.33000 and consolidation above 1.33088 will give a prospect of growth to the 1.33209 resistance. The area of 1.33209-1.33268 seems a strong resistance zone that can activate a price reverse. However, the breakout of 1.33268 can accelerate the pair towards 1.33362.

Technical indicators reflect the maintenance of the upward potential.
Bollinger Bands are diverging on the background of bullish momentum.
MACD is growing in a positive zone.
Stochastic is in the overbought zone and is pointed upwards.

Support and resistance

Support levels: 1.32904, 1.32751, 1.32599.
Resistance levels: 1.33057, 1.33209, 1.33362.

Trading recommendations

Short positions can be opened below the level of 1.32904 with the target at around 1.32751-1.32701 and stop-loss at 1.32974.
Long positions can be opened above the level of 1.33088 with the target at around 1.33209-1.33362 and stop-loss at 1.32996.

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