17, October 2016

USD/CAD(a 4-hour chart)

General overview

The US dollar weakened against its Canadian rival. However, its losses will be limited, the US dollar is supported across the board by the market’s hopes of the Fed rate-hike this year.

Current situation

The USD/CAD pair opened on a weaker note on Friday. The pair erased all its recent recovery gains and moved lower during the day. The price moved below 1.3250 and approached the 1.3150 level at the beginning of the New York session. Sellers managed to break the level during the North American hours. The pair is struggling with the 200-EMA which stopped its downward movement. The 50, 100 and 200 EMAs are turning down in the 4 hours chart. The resistance is at 1.3150, the support stands at 1.3050.

MACD is in the negative area. MACD decreased which indicates that sellers are getting stronger. The RSI oscillator moved downwards.

Trading recommendations

A close below 1.3150 will trigger losses towards 1.3120 where the 200-EMA lies. A cut through here will aim the USD/CAD at the 1.3050 level.