11, August 2016

USD/CAD (a 4-hour chart)

USD/CAD (a 4-hour chart)

Current situation

The pair has been under intense selling pressure since last week. The instrument is in an upward channel and traders pushed the price to its low limit on Wednesday. The USD/CAD found a strong support at 1.3000 where the pair reversed and partly erased its gains. The resistance is at 1.3100, the support comes in at 1.3000.

MACD decreased which indicates the sellers’ positions strength. RSI approached the oversold area.

The price broke the 200-EMA and stopped in its region in the 4 hours chart. The instrument is between the 100 and 200 EMAs which act as a resistance and a support. The 50 and 100 EMAs are turning downwards. The 200-EMA is still trending upwards.

Trading recommendations

Shall the pair breaks 1.3000 the downward movement will be continued. Otherwise, we will see a solid growth towards the 1.3100 region where the upper limit of the ascending channel lies.