USD/CAD: technical analysis 30.12.19
On the 4-hour chart, the instrument is falling along the lower line of the Bollinger Bands and is approaching the 1.30615 support. Assuming the pair’s ability to cross this mark, the level of 1.30463 can be targeted if holding short positions. The area of 1.30463-1.30310 seems a strong support area, that can activate a price reverse. Meanwhile, the breakdown and pair’s sustained trading below 1.30300 will be a key trigger for the sellers and accelerate the downward movement.
The upward rebound from 1.30615 and pullback above 1.30768 will be a sign for upward correction formation and give a prospect of growth to the level of 1.30920. One may speak about upward movement continuation after the price consolidates above the support level of 1.30957. In this case, the next targets of buyers will be the level of 1.31073-1.31226.
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 is growing in the negative zone.
Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Support levels: 1.30615, 1.30463, 1.30310.
Resistance levels: 1.30768, 1.30920, 1.31073, 1.31226.
Short positions can be opened below the level of 1.30615 with the target at around 1.30463-1.30310 and stop-loss at 1.30716.
Long positions can be opened above the level of 1.30768 with the target at around 1.30920-1.31073 and stop-loss at 1.30665.