Technical analytics

USDCAD market technical outlook

USDCAD

Analysis method - “Trend Potential”

October 18, 2018


Daily chart:

Final phase of upward movement in direction of the resistance 1.3097 (upper Bollinger band). Bands are stable and ADX resides in a weak zone, that makes probability of downward bounce quite high.


H4-chart:

We note local resistance level at the area of upper Bollinger band (1.3065). ADX stands in a trending configuration, therefore, decline can get impulse nature. Support is at 1.2918 (lower Bollinger band).


H1-chart:

Consolidation within upper Bollinger bands (1.3032-1.3057). The next support proves to be the psychological level 1.3000. Thus, to go below 1.3000 today appears to be a hard task.


Expectations:

Main scenario: Flat in the 1.3000-1.3052 range.

Alternative scenario: Decline under 1.3000 and reach of the 1.2918 level.

Trading recommendations:

Shorts from the 1.3052 level towards 1.3000.



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