30, November 2016

USD/CAD(a 4-hour chart)

General overview

The greenback kept the upbeat tone unchanged vs. its Canadian peer on Tuesday. The dollar was supported by the US GDP. Moreover, all commodity currencies were under pressure due to oil prices decline.

Current situation

The bullish sentiment in USD remained intact yesterday. The price still trades in the near term upward channel. The USD/CAD bounced off the lower boundary of the channel around 1.3400 and advanced towards 1.3470 during the European hours. The pair struggled hard with the level to extend its gains ahead of the New York session. The price pushed away from the 200-EMA in the 4 hours chart. The pair grew and snapped the 50 and 100 Day EMAs in the same chart. The moving averages are pointing higher. The resistance is at 1.3470, the support comes in at 1.3400.

MACD grew which indicates the sellers’ positions weakening. RSI bounced off the oversold readings.

Trading recommendations

Bulls kept focusing at the 1.3470 barrier on Tuesday. A daily close above the level may risk 1.3540. Alternatively, a failed test of the level shall send this market back to the 1.3400 handle.