11, July 2016

USD/CAD (a 4-hour chart)

USD/CAD (a 4-hour chart)

General overview

The unemployment rate unexpectedly decreased in Canada in June.

Current situation

The CAD is in an ascending channel, near its upper limit. The pair made an attempt to break the level 1.3100, however, the attempt failed. The price bounced from the resistance 1.3100 downwards. The moving averages (50, 100 and 200) are horizontal in the 4 hours chart. The resistance is at 1.3100, the support comes in at 1.3000.

MACD is in the positive area that indicates the buyers’ strong positions. RSI is close to the overbought area. If the oscillator enters the overbought area, we expect the growth continuation.

Trading recommendations

We recommend going short with the first target – 1.2900. When the price consolidates below the first target it may go to the level 1.2800.