16, September 2016

USD/CAD(a 4-hour chart)

General Overview

The Canadian dollar is weaker against the U.S. dollar as oil price decreased, but the risk aversion is limited.

Current situation

The USA/CAD is in ascending channel, close to its upper boundary. After a brief test of the weekly highs near 1.3200 the price made an attempt to return below the tested level. Sellers seem to be struggling for the level 1.3200 now. The moving averages are below the price. The 50 EMA is crossing upward the 100 and 200 EMAs in the 4 hours chart. The moving averages direction is upwards. The resistance is at 1.3200, the support comes in at 1.3100.

MACD remained in the positive area. MACD is at the same level which confirms the strength of buyers. RSI left the overbought area                                  

Trading recommendations

The undertone is still positive. If the price overcomes the level 1.3200 the upward trajectory will be continued. If the level holds the instrument will sell-off towards 1.3100.