19, July 2016

USD/CAD (a 4-hour chart)

USD/CAD (a 4-hour chart)

General overview

There is a moderate sentiment in the market today. The oil quotes are the main guideline for the pair. The growth of Brent will support sellers in the USD/CAD.

Current situation

We believe the pair is back to a long-term downwards trend, however, it found quite a lot of support around 1.2900. Yesterday the pair grew and was able to gain about 0.15%. The resistance is at 1.3000, the support comes in at 1.2900.

MACD is in the negative area. Its histogram grew which indicates the sellers’ positions weakening. Indicator RSI is in the neutral territory.

The 4 hours chart shows that the instrument broke the 50, 100 and 200 EMAs. The 200-EMA acts as a support for the pair. The EMAs direction is horizontal.

Trading recommendations

The approach to the level of 1.3000 may lead to a price rebound down. The potential rebound target is the support level of 1.2900.