USD/CAD: TECHNICAL ANALYSIS 07.11.2019
On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands. The lack of long-term corrections reflects the strength of the current trend. If the current trend maintains, the pair's next targets will be the area of 1.31989-1.32141. This area can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Meanwhile, a decisive break of 1.32141 will be a key trigger for bullish traders and give a prospect of growth to 1.32300.
The pullback and pair’s sustained trading below 1.31836 will be a signal for a downward correction. In this case, USD/CAD can drop back to 1.31683 support. Should prices continue slipping under 1.31683, the level of 1.31531 (the middle line of Bollinger bands) might try activating an upward rebound.
Technical indicators reflect the maintenance of the upward potential, but the downward correction is possible in the short term. Bollinger Bands are diverging on the background of bullish momentum. MACD is actively growing in the positive zone. Stochastic is in the overbought area and is pointed sideways.
Support and resistance
Support levels: 1.31836, 1.31683, 1.31531.
Resistance levels: 1.31989, 1.32141, 1.33000.
Short positions can be opened below the level of 1.31836 with the target at around 1.31683-1.31531 and stop-loss 1.31937.
Long positions can be opened above the level of 1.31989 with the target at around 1.32141-1.32300 and stop-loss 1.31885.