USD/CAD: technical analysis 14.08.2019

USD/CAD: technical analysis 14.08.2019

Current trend

On 4-hour chart, the instrument is keeping a negative dynamic. The instrument is now testing the support level of 1.32141 (Murray [5/8]). The breakdown of this level will let the price to fall to the area of level 1.31836 (Murray [4/8]), which seem a strong support. There is a high chance of an upward rebound, while its breakdown would allow the fall to continue. In case the pair manage to cross the 1.31836 mark, the sellers will aim for the 1.31531 (Murray [3/8]) support zone. Alternative scenario. If the “bulls” manage to raise the rate above the level of 1.32446 (Murray [6/8]), the correction can continue to the area of 1.32637-1.32751 (Murray [7/8]). Technical indicators reflect the moderate maintenance of the current downward trend. Bollinger Bands are pointed sideways. The volumes of MACD histogram are growing in the negative zone. Stochastic is pointed downwards.

Support and resistance

Support levels: 1.32141, 1.31836, 1.31531.
Resistance levels: 1.32446, 1.32637, 1.32751.

Trading recommendations

Long positions can be opened above the level of 1.32446 with the target at around 1.32637 and stop-loss 1.32382.
Short positions can be opened below the level of 1.32141 with the target at around 1.31836 and stop-loss 1.32242.