USD/CAD: technical analysis 08.02.2019

USD/CAD: technical analysis 08.02.2019

Current trend

On 4-hour chart, USD/CAD is growing along the upper line of the Bollinger Bands.
The lack of long-term corrections reflects the strength of the current trend.
The breaking 1.3305 (Murray [2/8]) mark and holding above it will push the price to 1.3366 (Murray [3/8]).
Technical indicators mostly keep a buy signal. Bollinger Bands are directed up. MACD is active growing in the positive zone. However, as the Stochastic is in the overbought area,
and the price has broken the upper border of Bollinger Bands, the downward correction is not excluded.
One may speak about downward correction after the price consolidates below the support level of 1.3244 (Murray [1/8]). In this case, the main target of the correction will be the level of 1.1383 (Murray [0/8]), which corresponds to the middle line of Bollinger Bands.

Support and resistance

Support levels: 1.3244, 1.3183, 1.3122, 1.3061.

Resistance levels: 1.3305, 1.3367, 1.3427, 1.3488.

Trading recommendations

Long positions can be opened above the level of 1.3305 with the target at around 1.3366 and stop-loss 1.3385.

Short positions can be opened below the level of 1.3244 with the target at around 1.3183 and stop-loss 1.3260.