21, June 2016

USD/CAD (a 4-hour chart)

USD/CAD (a 4-hour chart)

General overview

The inflation in Canada is lower than expected according to Friday release.

Current situation

The pair is under pressure. The USD/CAD decreased and set a new low at the mark of 1.2770. The resistance is at 1.2900, the support is at 1.2800.

MACD moved into the negative area. The signal line is above the histogram. If the histogram remains in the negative area it will show a sell signal. The indicator RSI is close to the oversold area. The USD/CAD is below the Moving Averages (50, 100 and 200) on the 4 hour chart. The Moving Averages are moving downwards.

Trading recommendations

The pair USD/CAD is oversold. If it consolidates below 1.2800 the decrease will be continued to 1.2680. If the pair manages a break above 1.2900 and stays there we would likely be buying to 1.3100.