USD/CAD: technical analysis
18 May 2018, 11:15
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 1.3000 |
| Take Profit | 1.3220 |
| Stop Loss | 1.2920 |
| Key Levels | 1.2590, 1.2660, 1.2745, 1.2920, 1.3000, 1.3220 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.2745 |
| Take Profit | 1.2660, 1.2590 |
| Stop Loss | 1.2790 |
| Key Levels | 1.2590, 1.2660, 1.2745, 1.2920, 1.3000, 1.3220 |
USD/CAD, D1
On the daily chart, the pair is trading in the lower Bollinger band. The price remains above its moving averages that are horizontal. The RSI keeps testing from above its longer MA. The Composite is falling, having failed its longer MA.
USD/CAD, H4
On the 4-hour chart, the pair is trading on the middle MA of the Bollinger Bands. The price remains on the level with the EMA14, EMA65 and EMA130 and slightly above the SMA200 – all are horizontal. The RSI is about to test from above its longer MA. The Composite is approaching its strong resistance.
Key levels
Support levels: 1.2745 (local lows), 1.2660 (November 2017 lows), 1.2590 (January highs).
Resistance levels: 1.2920 (October 2017 highs), 1.3000 (local highs), 1.3220 (April 2017 lows).
Trading tips
The price is consolidating below a strong resistance near 1.3000. Its breakout would lead to a growth continuation.
Long positions can be opened from the level of 1.3000 with the target at 1.3220 and stop-loss at 1.2920. Validity – 3-5 days.
Short positions can be opened from the level of 1.2745 with targets at 1.2660, 1.2590 and stop-loss at 1.2790. Validity – 3-5 days.
On the daily chart, the pair is trading in the lower Bollinger band. The price remains above its moving averages that are horizontal. The RSI keeps testing from above its longer MA. The Composite is falling, having failed its longer MA.
USD/CAD, H4
On the 4-hour chart, the pair is trading on the middle MA of the Bollinger Bands. The price remains on the level with the EMA14, EMA65 and EMA130 and slightly above the SMA200 – all are horizontal. The RSI is about to test from above its longer MA. The Composite is approaching its strong resistance.
Key levels
Support levels: 1.2745 (local lows), 1.2660 (November 2017 lows), 1.2590 (January highs).
Resistance levels: 1.2920 (October 2017 highs), 1.3000 (local highs), 1.3220 (April 2017 lows).
Trading tips
The price is consolidating below a strong resistance near 1.3000. Its breakout would lead to a growth continuation.
Long positions can be opened from the level of 1.3000 with the target at 1.3220 and stop-loss at 1.2920. Validity – 3-5 days.
Short positions can be opened from the level of 1.2745 with targets at 1.2660, 1.2590 and stop-loss at 1.2790. Validity – 3-5 days.
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