USD/CAD: technical analysis 19.12.19
USD/CAD is in the stage of upward correction after falling to the level of 1.31032, but the downward general downward trend is still maintained. The decisive break of 1.31000 support is needed to indicate the downward trend resumption. In this case, the next targets of sellers will be the level of 1.30920, 1.30768.
If the "bulls" manage to raise the rate above the level of 1.31226, the correction can continue to the area of 1.31531, which coincided with the middle line of Bollinger Bands. There is a chance of a downward rebound, while its breakout will be a signal for upward trend resumption and give a prospect of growth to the 1.31836 resistance.
Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term.
Bollinger Bands are pointed downwards.
MACD is growing in the negative zone.
Meanwhile, as the Stochastic is in the oversold area, and the price has broken the lower border of Bollinger Bands, the upward correction is not excluded.
Support and resistance
Support levels: 1.31032, 1.30920, 1.30615.
Resistance levels: 1.31226, 1.31531, 1.31836.
Short positions can be opened below the level of 1.31000 with the target at around 1.30920-1.30768 and stop-loss at 1.31077.
Long positions can be opened above the level of 1.31226 with the target at around 1.31531 and stop-loss at 1.31124.