25, October 2016

USD/CAD(a 4-hour chart)

General overview

The U.S. dollar grew against its Canadian counterpart amid reviving hopes of a Fed rate-hike in December. Meanwhile the weak Canadian data weighed on the CAD.

Current situation

The USD/CAD traded near last week highs on Monday. The pair was neutral and stayed above 1.3330 during the day. The price is well above the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages are turning upwards. The resistance is at 1.3400, the support stands at 1.3330.

MACD is within the positive territory. MACD remained at the same level which confirms the strength of buyers. The RSI indicator is near overvalued territory, favoring a move lower.

Trading recommendations

The overall tone is bullish. Buyers may push the price higher to test 1.3400. The price may slightly soften towards 1.3250.