07, July 2016

USD/CAD (a 4-hour chart)

USD/CAD (a 4-hour chart)

General overview

The Canadian dollar as a commodity currency is still under pressure due to the side effect of the British referendum.

Current situation

The pair got under pressure yesterday after reaching a new local high at 1.3050. However, sellers were stopped at 1.3000 level, which limited the further downward movement. The resistance is at 1.3000, the support comes in at 1.2900.

MACD and RSI decreased, which is a sell signal. Any further decrease will indicate sellers growing strength. The moving averages formed a cross-over in the 4 hours chart. The 50-EMA is a support for the pair. The moving averages direction is horizontal.

Trading recommendations

We believe that the price is likely to go to the support level of 1.2900.