USD/CAD: technical analysis 30.09.2019
On the 4-hour chart, the instrument is falling along the lower line of the Bollinger Bands. The price is now approaching a support in the region of 1.32294. Assuming the pair’s ability to cross 1.32294 mark, the level of 1.32141 can be targeted if holding short positions. Pullback and pair’s sustained trading above the level of 1.32446 could set 1.32560 mark (the middle line of Bollinger bands) on buyers’ radar. The area of 1.32560-1.32599 seem a strong level, which can activate an downward rebound. Meanwhile, break of 1.32599 mark can accelerate the pair towards 1.32751 (Murray [6/8]). 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. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is pointed upwards, signaling the development of an upward correction.
Support and resistance
Support levels: 1.32294, 1.32141, 1.31989.
Resistance levels: 1.32446, 1.32599, 1.32751.
Long positions can be opened above the level of 1.32446 with the target at around 1.32599-1.32751 and stop-loss 1.32344.
Short positions can be opened below the level of 1.32294 with the target at around 1.32141-1.31989 and stop-loss 1.32395.