USD/CAD: TECHNICAL ANALYSIS 25.10.2019
USD/CAD is consolidating around the 3 month lowest min at the level 1.30701 due to low trading activity. In order to resume the bearish price action USD/CAD should fall below the level 1.30524. In this case, the next targets of sellers will be the level of 1.303013, then 1.30005. On the flip-side, the instrument has the potential to upward correction. The upward correction will be more active after the price is set above the level of 1.30824, which is the middle line of Bollinger Bands. Pair’s sustained trading beyond this level it will give the prospect of growth to the levels of 1.31080. The area of 1.31080-1.31226 level will be a key level for the buyers. There is a high chance of an upward rebound. Meanwhile, decisive breakout of this level will indicate the upward trend formation.
Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term. Bollinger Bands are diverging on the background of bearish momentum. Stochastic is pointed downwards.MACD volumes are decreasing in the positive zone.
Support and resistance
Support levels: 1.30615, 1.30313, 1.30005.
Resistance levels: 1.30824, 1.31080, 1.31226.
Short positions can be opened below the level of 1.30615 with the target at around 1.30313 and stop-loss 1.30715.
Long positions can be opened above the level of 1.30824 with the target at around 1.31080 and stop-loss 1.30738.