09, November 2016

USD/CAD(a 4-hour chart)

General overview

The CAD mowed lower following oil prices recovery on the one side and the US dollar strengthening on the other.

Current situation

The neutral phase that started last week is still intact. The price remained in a narrow range between 1.3360 - 1.3400 on Tuesday. The pair declined to the lowest range end struggling with the 50-EMA to break lower on yesterday's trades. The pair tested the 50-EMA which provided a solid support for the price in the 4 hours chart. The moving averages maintained their bullish slope in the mentioned timeframe. The resistance is at 1.3400, the support can be found at 1.3300.

The MACD histogram decreased which indicates the sellers’ growing strength. RSI is going south which confirms the current downward movement.

Trading recommendations

We expect the pair to remain in red figures. Should the USD/CAD pair break below the current support it may extend its weakness towards 1.3250.