13, September 2016

USD/CAD(a 4-hour chart)

General Overview

The dollar is strong across the board due to expectations of an eventual Fed rate-hike action in September. Traders are waiting for new Fed’s official comments.

Current situation

The greenback is still strong against its Canadian counterpart. Traders pushed the price higher and the pair seems to have found an immediate resistance at 1.3100 where the price turned down and trended south. The 50, 100 and 200 Day EMAs accelerated their growth. The 50-EMA is crossing the 100 and 200 EMAs upwards. The resistance is at 1.3200, the support comes in at 1.3100.

MACD is in the positive area. The histogram grew which indicates the buyers’ strength.

RSI is in the overbought area.

Trading recommendations

A clear strength above this immediate resistance will pave way for continuation of the pair's growth towards 1.3200. Alternatively, sellers will lead the price below 1.3100 towards the 1.3040 region.