USD/CAD: technical analysis 16.12.19

Current trend

USD/CAD quotes attempted to grow, but reaching 1.31855 mark moved to a decline. If the sellers manage to decline the rate below the level of 1.31680, the correction can continue to the area of 1.31531. This level seems strong support which can activate an upward rebound. However, the breakdown of this level will give a prospect of decline to 1.31226 support.

Alternative scenario

The pullback above 1.31836 resistance and pair’s sustained trading above this level will be a signal for upward trend resumption and let the price retest 1.32039 resistance. One may speak about upward movement continuation after the price consolidates above the resistance level of 1.32141. In this case, the next targets of buyers will be the level of 1.32446.

Technical indicators

Technical indicators reflect the moderate maintenance of the current downward trend.

Bollinger Bands are converging on the background of bearish momentum.

MACD is in the negative zone, keeping a sell signal.

Stochastic is pointed downwards.

Support and resistance

Support levels: 1.31680, 1.31531, 131226.
Resistance levels: 1.31836, 1.32039, 1.32141, 1.32446.

Trading recommendations

Short positions can be opened below the level of 1.31531 with the target at around 1.31226 and stop-loss at 1.31631.
Long positions can be opened above the level of 1.31836 with the target at around 1.32141 and stop-loss at 1.31734.

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