29, September 2016

USD/CAD(a 4-hour chart)

Current situation

The pair remains in the upward channel, close to its lower limit. However, the upward momentum seems to have run out of steam. An attempt to extend an upward trajectory appeared short-lived. The price stopped a few pips above 1.3200. The USD/CAD remained above the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages accelerated their growth. The resistance is at 1.3000, the support comes in at 1.3200.

MACD remained in the positive area. MACD decreased which indicates the buyers’ positions weakening. The indicator still gives a buy signal. RSI is within the neutral territory.

Trading recommendations

The USD/CAD pair is overbought. We expect a short-term downward correction. The price may decrease towards 1.3140 where the 50-EMA resides. Conversely, the pair will extend its upward trajectory towards 1.3280 - 1.3300.