USD/CAD: technical analysis
10 May 2018, 11:37
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 1.2770 |
| Take Profit | 1.2665, 1.2595 |
| Stop Loss | 1.2810 |
| Key Levels | 1.2595, 1.2665, 1.2770, 1.2920, 1.2995, 1.3120 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 1.2995 |
| Take Profit | 1.3120 |
| Stop Loss | 1.2920 |
| Key Levels | 1.2595, 1.2665, 1.2770, 1.2920, 1.2995, 1.3120 |
USD/CAD, D1
On the daily chart, the pair is trading on the middle MA of the Bollinger Bands. The price remains above the EMA65, EMA130 and SMA200 that are directed up. The RSI is testing from above its longer MA. The Composite is testing its longer MA as well, having formed a Bearish divergence with the price.
USD/CAD, H4
On the 4-hour chart, the pair is trading on the lower line of the Bollinger Bands. The price remains on the level with the SMA200 and slightly below the EMA65, EMA130 stat start turning down. The RSI is about to test the border of the oversold zone. The Composite has reached its critical oversold levels.
Key levels
Support levels: 1.2770 (local lows), 1.2665 (November 2017 lows), 1.2595 (local lows).
Resistance levels: 1.2920 (December 2017 highs), 1.2995 (local highs), 1.3120 (March highs).
Trading tips
The downward correction is likely to continue.
Short positions can be opened from the level of 1.2770 with targets at 1.2665, 1.2595 and stop-loss at 1.2810. Validity – 3-5 days.
Long positions can be opened from the level of 1.2995 with the target at 1.3120 and stop-loss at 1.2920. Validity – 3-5 days.
On the daily chart, the pair is trading on the middle MA of the Bollinger Bands. The price remains above the EMA65, EMA130 and SMA200 that are directed up. The RSI is testing from above its longer MA. The Composite is testing its longer MA as well, having formed a Bearish divergence with the price.
USD/CAD, H4
On the 4-hour chart, the pair is trading on the lower line of the Bollinger Bands. The price remains on the level with the SMA200 and slightly below the EMA65, EMA130 stat start turning down. The RSI is about to test the border of the oversold zone. The Composite has reached its critical oversold levels.
Key levels
Support levels: 1.2770 (local lows), 1.2665 (November 2017 lows), 1.2595 (local lows).
Resistance levels: 1.2920 (December 2017 highs), 1.2995 (local highs), 1.3120 (March highs).
Trading tips
The downward correction is likely to continue.
Short positions can be opened from the level of 1.2770 with targets at 1.2665, 1.2595 and stop-loss at 1.2810. Validity – 3-5 days.
Long positions can be opened from the level of 1.2995 with the target at 1.3120 and stop-loss at 1.2920. Validity – 3-5 days.
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