21, September 2016

USD/CAD (a 4-hour chart)

General Overview

The Canadian dollar got under pressure following oil prices decrease, when Venezuela stated the necessity to bring oil production down.

Current situation

The pair was positive and traded near the 6-week highs on Tuesday. After a short consolidation during the Asian hours buyers pushed the price higher. The moving averages extended their growth. The 50, 100 and 200 Day EMAs keep heading higher. The resistance is at 1.3200, the support comes in at 1.3100.

 MACD remained in the positive area. The histogram grew which indicates the buyers’ strength. RSI is approaching overbought area

Trading recommendations

The pair is overbought and we do not exclude a downward correction right now. The price may decline towards the 1.3100 region where the 50-EMA stands. In the scenario, where buyers keep control over the market the USD/CAD will trend higher towards 1.3300.