26, September 2016

USD/CAD(a 4-hour chart)

General Overview

Commodity currencies are under pressure due to oil prices decrease and dollar strengthening.

Current situation

 The pair continued with a recovery on Friday. The price bounced from the weekly low at 1.3000 and moved north towards 1.3200. However, the growing momentum faded around 1.3150. The price stopped growing and began consolidating its gains. The USD/CAD pair broke the 50, 100 and 200 Day EMAs on its way upwards. The 50-EMA acts as a support for the price now. The moving averages are neutral in the 4 hours chart. The resistance is at 1.3200, the support comes in at 1.3100.

The histogram grew which indicates the buyers’ strength. RSI approached the overbought area.

Trading recommendations

Despite the recent growth the pair is under pressure. If buyers have strength they will lead the price towards 1.3200. In the event that the sellers manage to force the below 1.3100 the price will trend towards 1.3000.