20, October 2016

USD/CAD(a 4-hour chart)

General overview

The commodity currencies like loonie strengthened following oil prices growth. 

Current situation

The pair retained a neutral, short-term undertone. The USD/CAD extended its recovery and touched the daily high at 1.3128 before retreating downwards.  The price spent the day within a tight range 1.3130 - 1.3080. The USD/CAD pair bounced downwards from the 200-EMA in the 4 hours chart. The 200-EMA is neutral, the 50-EMA is crossing the 100-EMA downwards. The resistance is at 1.3150, the support stands at 1.3050.

MACD decreased which confirms the strength of sellers. RSI indicator was holding near oversold levels, favoring a new move lower.

Trading recommendations

The USD/CAD is approaching the support 1.3050. If the price breaks this support, the pair may fall further that should send this market looking for the 1.3000 mark.