14, July 2016

USD/CAD (a 4-hour chart)

USD/CAD (a 4-hour chart)

General overview

The Bank of Canada held the rates steady on Wednesday, although declining oil prices appeared to limit the CAD.

Current situation

The CAD/USD broke the 50-EMA and snapped the 100-EMA in the 4 hours chart. The quotes rebounded from the 100-EMA which acts as a support.

MACD is in the positive area. Its histogram decreased which indicates the buyers’ positions weakening. RSI approached the oversold area that also supports the sellers’ strength.

The pair decreased and lost about 0.60% yesterday. The instrument is in a short-term ascending channel and the pair approached its lower limit.

Trading recommendations

The potential decrease targets are two levels of support: 1.2900 and 1.2800.