USD/CAD(a 4-hour chart)
A better-than-expected US ADP Employment survey and disappointing Canadian GDP for Q2 weighed on the Canadian dollar.
The pair resumed its bullish momentum and set a fresh 3-week high which is the highest level since August 10th. The USD/CAD could escalate up to 1.3133. MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI is in the overbought territory. In the 4 hours chart the price is advancing from the moving averages which are turning upwards to follow the price. The resistance is at 1.3200, the support comes in at 1.3100.
We expect markets to stay fairly positive. In this potential scenario, the next stop for the USD/CAD could well be around 1.3150. Conversely, the instrument can turn around. In this scenario, sellers will push the price to the 1.3050 region.