22, November 2016

USD/CAD(a 4-hour chart)

General overview

The Canadian dollar traded lower on Monday as growing oil prices weighed on commodity currencies like CAD. A weak wholesale Sales report weighed on the CAD as well.

Current situation

The pair remained in a long term upward channel on Monday. Traders made an attempt to break the channel lower limit but failed. The bearish spike faded at 1.3434 and the price returned to 1.3470 post Europe open. Sellers took another chance to reclaim the level in the North American session. The pair tested the 50-EMA in the 4 hours chart. The moving presented a strong support for the price. The 50, 100 and 200 EMAs maintained their bullish slope in the same chart. The resistance is at 1.3540, the support can be found at 1.3470.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI was neutral.

Trading recommendations

The longer term outlook will be bullish as long as the price holds above the 1.3400 support area. If a bid tone remains intact the pair may strengthen to 1.3540. A break below 1.3470 will ease the buying pressure. A move lower will neutralize it.