USD/CAD: technical analysis
In the middle of this month the pair reached the local highs of 1.0526, but failed to go higher up and fell to the level of 1.0415. At the moment the pair is trading near the level of 1.0465, which coincides with the level of 23.6% Fibonacci. On the hourly timeframe a pattern “Triangle” has been formed and the price is prepared to break down one of its sides. Technical indicators give mixed signals. Stochastic is in the medium zone and both of its lines are directed downward. MACD histogram has crossed the zero line, giving a buy signal. Moving average lines with the periods 20 and 50 are showing growth.
Support and resistance
The nearest resistance level is 1.0475, which will be followed by 1.0500, 1.0500 and 1.0526; the latter one is the key level of the “bulls”. Support levels: 1.0440, 1.0430 and 1.0415.
At the moment there is no clear trend in the market. Short positions can be opened below the levels of 1.0440 and 1.0415. Long positions are advisable after consolidation of the price above the level of 1.0475.
Analyst of LiteForex Group of Companies