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USD/CAD: technical analysis 17.10.2019

Current trend

On 4-hour chart, the instrument is correcting up from the lower line of the Bollinger Bands. The price is approaching a strong resistance in the region of 1.32141, which corresponds to the middle line of Bollinger Bands and may be a key target of correction. There is a chance of an downward rebound, while its breakdown would allow the growth to continue to the area of 1.32367.
Alternative scenario.
If USD/CAD cannot consolidate above the level of 1.32141 during short term period, the downward movement restoration and retest of the support level 1.31836 are possible. The downward trend will be restored after the price is set below the level of 1.31836. In this case, the next targets of sellers will be the level of 1.31531. The technical picture is mixed. Bollinger Bands are pointed sideways. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is pointed upwards, reflecting the possibility of the upward movement formation.

Support and resistance

Support levels: 1.32094, 1.31836, 1.31531.
Resistance levels: 1.32141, 1.32367, 1.32446.

Trading recommendations

Short positions can be opened below the level of 1.31836 with the target at around 1.31531 and stop-loss 1.31936.
Long positions can be opened above the level of 1.32141 with the target at around 1.32446 and stop-loss 1.32041.

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