USD/CAD: technical analysis 20.11.2019
On the 4-hour chart, the instrument keeps a positive dynamic. At the moment the price has met the resistance at the level of 1.32828. Assuming the pair’s ability to cross this level, the mark of 1.33057 can be targeted if holding long positions. The area of 1.33057 seems a strong level that can activate a downward rebound. Meanwhile, a decisive break of this level could trigger a pair’s fresh run-up to 1.33362 resistance.
The pullback and pair’s sustained trading below 1.32690 will be a signal for downward correction formation. In this case, the decline can continue to the area of 1.32446 support.
The downward trend will be restored after the price is set below the level of 1.32290, which is the middle line of Bollinger Bands. In this case, the target sellers will aim for the area of 1.32141-1.32000 levels.
Technical indicators maintain a buy signal.
Bollinger Bands are diverging on the background of bullish momentum. MACD volumes are stabilized in the positive zone. Stochastic is in the overbought area and is pointed upwards.
Support and resistance
Support levels: 1.32751, 1.32446, 1.32141, 1.32000.
Resistance levels: 1.32828, 1.33057, 1.33362.
Short positions can be opened below the level of 1.32690 with the target at around 1.32446 and stop-loss at 1.32771.
Long positions can be opened above the level of 1.32828 with the target at around 1.33057 and stop-loss at 1.32751.