USD/CAD: technical analysis 07.10.2019
The USD/CAD pair begins today’s trading with slight bullish bias due to upward correction. If the current trend maintains, the next target of buyers will be the level of 1.33362 (Murray [5/8]). The area of 1.33362-1.33473 seem a strong resistance area which can prevent the instrument from growing. Meanwhile the breakout and pair’s sustained trading above the 1.33473 level will let the price grow to the area of 1.33667 (Murray [6/8]). If USD/CAD cannot consolidate above the level of 1.33362 during short term period the downward movement restoration and retest of the level 1.33057 (Murray [4/8])-1.32987 are possible.
The downward trend will be restored after the price is set below the level of 1.32987. In this case, the next targets of sellers will be the level of 1.32828-1.32751. Technical indicators mostly keep a buy signal. Bollinger Bands are converging on the background of bullish momentum. MACD is slowly growing in the positive zone. Stochastic is pointed upwards, reflecting the high possibility of the upward movement formation.
Support and resistance
Support levels: 1.33128, 1.33057, 1.32987, 1.32751.
Resistance levels: 1.33266, 1.33362, 1.33473, 1.33667.
Long positions can be opened above the level of 1.33362 with the target at around 1.33667 and stop-loss 1.33260.
Short positions can be opened below the level of 1.33128 with the target at around 1.33057-1.32800 and stop-loss 1.33237.