16, June 2016

USD/CAD (a 4-hour chart)

USD/CAD (a 4-hour chart)

General overview

The growth of the manufacturing sector did not support the Canadian dollar. The oil prices continued putting pressure on the CAD.

Current situation

The USD/CAD continued its recovery during the day. Bulls seemed to return to the market and took the price upwards. The pair broke through the resistance 1.2900 and advanced further to the north. Still it failed to grow and returned below 1.2900. The resistance stands at 1.3000, the support comes in at 1.2900.

MACD is in the positive area. The indicator is growing, that is a buy signal. The indicator RSI approached the overbought area. That is a buy signal. The price broke through the Moving Averages (50, 100 and 200) on the 4 hour chart.

Trading recommendations

If the pair returns below 1.2900 the decrease will be continued. The closest sellers’ targets are: 1.2800 and 1.2680. The level 1.1300 remained the target for the bulls.