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USD/CAD: technical analysis 08.10.2019

Current trend

On 4-hour chart, the instrument shows a negative dynamic. The price went down below the level of 1.33057 (Murray [6/8]) and can fall to the levels of 1.32751 (Murray [3/8]). Such case scenario will be actual after price is set below the support level of 1.32898. The level of 1.32751 seem a key target for the shor-term sellers. There is a chance of an upward rebound, while its breakdown would be a start for the formation of an downtrend. Pair’s sustained trading below the level of 1.32751 will let the USD/CAD reach 1.32599-1.32446 (Murray [2/8]).
Alternative scenario.
Pullback above 1.33057 level could lead the price back to 1.33162, which coincided with the middle line of Bollinger Bands. One may speak about upward movement continuation after the price consolidates above the resistance level of 1.33264. In this case, the next targets of buyers will be the level of 1.33362 (Murray [5/8]). Should prices continue growing above 1.33362 mark, the area of level of 1.33473-1.33667 might try activating an downward rebound.
Technical indicators mostly keep a sell signal. Bollinger Bands are diverging on the background of bearish momentum. MACD volumes are decreasing in the positive zone. Stochastic is pointed downwards.

Support and resistance

Support levels: 1.32921, 1.32751, 1.32599, 1.32446.
Resistance levels: 1.33057, 1.33162, 1.33264, 1.33362.

Trading recommendations

Short positions can be opened below the level of 1.32921 with the target at around 1.32751-1.32599 and stop-loss 1.33041.
Long positions can be opened above the level of 1.33057 with the target at around 1.33162-1.33362 and stop-loss 1.32955.

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