25, July 2016

USD/CAD (a 4-hour chart)

USD/CAD (a 4-hour chart)

General overview

The Canadian economical growth will be supported by the government fiscal stimulus program. The program shall support the Canadian dollar. However, the low oil prices may limit its growth.

Current situation

The pair closed bullish on Friday. The USA dollar continued moving higher on the back of the positive USA statistics. The instrument was able to set a new local high at 1.3185. The resistance is at 1.3200, the support comes in at 1.3100.

MACD is in the positive area. MACD grew which indicates the buyers’ positions strengthening. Oscillator RSI is close to the overbought area which is a buy signal.

The 4 hours chart shows that the instrument is growing above the 50, 100 and 200 EMAs. The pair bounced upwards from the 50-EMA in the 1 hour chart. The moving averages (50, 100 and 200) are moving upwards.

Trading recommendations

From a technical perspective we see a growth continuation. As long as market holding above 1.3100 the uptrend pressure will continue toward 1.3200.