USD/CAD: technical analysis 19.07.2019

USD/CAD: technical analysis 19.07.2019

Current trend

The USD/CAD pair begins today’s trading with slight bullish bias due to upward correction. The first target of the correction is the level of 1.30532, which corresponds to the middle line of Bollinger Bands. Meanwhile, the level of 1.30463 (Murray [3/8]) can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Assuming the pair’s ability to cross 1.30532 level, the mark of 1.30615 (Murray [4/8]) can be argeted if holding long positions. The downward trend will be restored after the price is set below the level of 1.30157 (Murray [1/8]). In this case, the next targets of sellers will be the level of 1.30005 (Murray [0/8]). The technical picture is mixed. Bollinger Bands are diverging, reflecting the active development of the current upward trend. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is pointed upwards and is ready to exi the oversold zone and form a buy signal.

Support and resistance

Support levels: 1.30310, 1.30157, 1.30005.
Resistance levels: 1.30463, 1.30615, 1.30768.

Trading recommendations

Long positions can be opened above the level of 1.30400 with the target at around 1.30532 and stop-loss 1.30360.
Short positions can be opened below the level of 1.30157 with the target at around 1.30005 and stop-loss 1.30207.