07, October 2016

USD/CAD(a 4-hour chart)

General overview

The USD/CAD extended its gains on Thursday on the back of a stronger dollar.

Current situation

The price recovered after Wednesday’s brief decrease yesterday. Buyers pushed the price from the current low at 1.3160 towards the immediate resistance where the buying interest faded for a while. Bulls returned to the market at the beginning of the New York session and the USD/CAD continued to struggle with the level 1.3200. The USD/CAD pair remained above the moving averages in the 4 hours chart. The moving averages maintained their bullish slope in the 4 hours chart. The resistance is at 1.3200, the support stands at 1.3100.

The MACD histogram grew which is a buy signal. RSI is approaching the overbought area.

Trading recommendations

To trigger additional upward momentum the price needs to break above 1.3200. Once we break above the level, we think that the 1.3280 mark will be next.