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USD/CAD: TECHNICAL ANALYSIS 22.10.2019

Current trend

On the 4-hour chart, the instrument is falling along the lower line of the Bollinger Bands. Now we can see a slightly upward correction, but the general downward trend is still maintained. If the "bulls" manage to raise the rate above the level of 1.30917, the correction can continue to the area of 1.31226, which coincided with the middle line of Bollinger Bands. This level can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Meanwhile the breakout and consolidation above it will give the prospect of growth to the levels of 1.31378-1.31531.
Alternative scenario.
The downward trend will be restored after the price is set below the level of 1.30702. In this case, the next targets of sellers will be the level of 1.30615. The level of 1.30615 seem a strong support area, after the decisive breakdown of which, it is better to enter the market with new sell orders. Pair’s sustained trading below this level will let the price to fall to the area of 1.30320.
Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term. Bollinger Bands are pointed downwards. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is preparing to exit the oversold zone and is directed upwards, signaling the development of an upward correction.

Support and resistance

Support levels: 1.30702, 1.30615, 1.30320.
Resistance levels: 1.30917, 1.31226, 1.31531.

Trading recommendations

Short positions can be opened below the level of 1.30702 with the target at around 1.30615-1.30320 and stop-loss 1.30829.
Long positions can be opened above the level of 1.30917 with the target at around 1.31226 and stop-loss 1.30814.

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