USD/CAD: technical analysis 16.01.20

Current trend

USD/CAD is in the stage of upward correction after falling to the level of 1.30342, but the downward trend is still maintained. The breakout and consolidation of the price above the level of 1.30463 will let USD/CAD reach the resistance level of 1.30570-1.30615. This area is coincided with the middle line of Bollinger Bands and can activate a downward reverse of the price. Meanwhile, the decisive breakout of 1.30615 is needed to indicate the upward trend resumption. In this case, the next targets of buyers will be the level of 1.30920.

Alternative scenario

A significant decrease is possible after the breakdown of the support level 1.30310. In this case, the next targets of sellers will be the level of 1.30005.

Technical indicators

Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term.

Bollinger Bands are diverging on the background of bearish momentum.

MACD volumes are decreasing in the positive zone.

Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 1.30310, 1.30005, 1.29700.
Resistance levels: 1.30615, 1.30920, 1.31226.

Trading recommendations

Short positions can be opened below the level of 1.30310 with the target at around 1.30005 and stop-loss at 1.30410.
Long positions can be opened above the level of 1.30615 with the target at around 1.30920 and stop-loss at 1.30515.

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