17, November 2016

USD/CAD (a 4-hour chart)

General overview

The USD/CAD strengthened on Wednesday amid oil prices decline.

Current situation

The pair is in an ascending channel, trading around its lower boundary. A two day decline was stopped when prices met a barrier around 1.3400. Prices bounced from the oversold area and trended upwards during the course of the day. The US dollar broke the level 1.3470 in late European trades. After breaking the level the USD/CAD extended its gains heading towards 1.3540. The bullish spike faded after testing the 1.3500 mark. The USD/CAD pair came across a selling pressure and returned to opening prices. The price bounced off the 50-EMA in the 4 hours chart. The moving averages extended their growth in the same chart. The resistance is at 1.3470, the support can be found at 1.3400. MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI bounced from the oversold area and headed north.

Trading recommendations

The pair is turning bullish now. A consolidation above 1.3470 will strengthen buyers' positions. Bulls may lead prices towards 1.3540.