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USD/CAD: TECHNICAL ANALYSIS 04.11.2019

Current trend

USD/CAD is trading below its middle line of Bollinger bands suggesting bearish momentum. If the sellers manage to decline the rate below the level of 1.31320, the correction can continue to the area of 1.31226. This level seems important in the short term period. There is a chance of an upward rebound, while its breakdown will be a signal for downward trend resumption. In this case, the next targets of sellers will be the level of 1.31073-1.30920.
Alternative scenario.
The pullback and pair’s sustained trading beyond 1.31531 level will give the prospect of growth to the levels of 1.31683-1.31836. The area of 1.31836 level seems a strong resistance that can activate a downward correction. Meanwhile, the breakout of this level will be a key trigger for bullish traders. In this case, the next targets of buyers will be the level of 1.31989-1.32141.
Technical indicators reflect the maintenance of the downward potential.
Bollinger Bands are converging on the background of bearish momentum.
MACD volumes are decreasing in the positive zone.
Stochastic is ib the overbought zone and is pointed sideways.

Support and resistance

Support levels: 1.31378, 1.31226, 1.31073.
Resistance levels: 1.31531, 1.31863, 1.31836.

Trading recommendations

Short positions can be opened below the level of 1.31320 with the target at around 1.31226-1.31073 and stop-loss 1.31402.
Long positions can be opened above the level of 1.31531 with the target at around 1.31863 and stop-loss 1.31420.

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