USD/CAD: technical analysis 10.10.2019

Current trend

On 4-hour chart, the instrument shows a negative dynamic. At the moment the price has met the support at the level of 1.33153,which coincided with the middle line of Bollinger Bands. The breakdown of this level will let the price to fall to the area of 1.33057 (Murray [4/8]). The level of 1.33057 seem a key level for the sellers in short term period. There is a chance of an upward rebound, while its breakdown would be a start for the formation of a downtrend. In this case, the next targets of sellers will be the level of 1.32947-1.32751 (Murray [3/8]).
Alternative scenario.
The pullback and pair’s sustained trading beyond 1.33250 will let the price to grow to the area of 1.33362. We notice that the area of 1.33250-1.33362 is the strong resistance zone which can prevent the instrument from growing. If the price is set above the level of 1.33437, the upward trend can restore, and the buyers will aim for the 1.33447-1.33667 (Murray [6/8]) resistance zone
Technical indicators mostly keep a sell signal. MACD volumes are decreasing in the positive zone. Stochastic is pointed downwards. Bollinger Bands are pointed sideways.

Support and resistance

Support levels: 1.33057, 1.32947, 1.32751.
Resistance levels: 1.33250, 1.33362, 1.33447, 1.33667.

Trading recommendations

Short positions can be opened below the level of 1.33057 with the target at around 1.32947-1.32751 and stop-loss 1.33159.
Long positions can be opened above the level of 1.33250 with the target at around 1.33362-1.33447 and stop-loss 1.33180.

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