24, November 2016

USD/CAD(a 4-hour chart)

General overview

The Canadian dollar weakened amid the oil prices decrease and due to a stronger dollar.

Current situation

The USD/CAD was unable to break 1.3540 and retreated from the level right after its test. The USD fell on profit-taking. Sellers pushed prices towards 1.3470. The pair touched the 50-EMA in the 4 hours chart. The 50-EMA is neutral while the 100 and 200 EMAs continued with their growth. The resistance is at 1.3540, the support comes in 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 bounced from the overbought area.

Trading recommendations

If the price breaks 1.3470 it may come under new wave of selling pressure. Should the USD/CAD bounce from the current support the price will return to its recent high at 1.3540.