02, August 2016

USD/CAD (a 4-hour chart)

USD/CAD (a 4-hour chart)

General overview

The dollar retreated from the 5-week lows, meanwhile, the markets keeps digesting the last GDP readings.

Current situation

The USD/CAD was in a buy mode and closed bullish yesterday. We consider the current rebound from the 1.3000 level as corrective. The session high was marked at 1.3100. The instrument gained about 0.52% during the course of the trades. The resistance is at 1.3100, the support comes in at 1.3000.

Technical indicators are giving sell signals. MACD is still negative. The histogram grew which indicates the sellers’ positions weakening. RSI bounced off the oversold territory.

The price broke the 100-EMA upwards and stopped at the 50-EMA. The 100- and 200 EMAs are neutral, the 50-EMA is heading north.

Trading recommendations

We believe the growth will be continued now. The first target is the level 1.3200. We do not exclude falls to 1.3000.