USD/CAD: Murrey analysis 18 February 2019, 13:48

USD/CAD: Murrey analysis

18 February 2019, 13:48

Scenario
Timeframe	Weekly
Recommendation	SELL STOP
Entry Point	1.3220
Take Profit	1.3183, 1.3122, 1.3060
Stop Loss	1.3255
Key Levels	1.3060, 1.3122, 1.3183, 1.3244, 1.3305, 1.3366, 1.3427

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.3310
Take Profit	1.3366, 1.3427
Stop Loss	1.3265
Key Levels	1.3060, 1.3122, 1.3183, 1.3244, 1.3305, 1.3366, 1.3427

On the daily chart, for more than a week, the price has been trading within the main channel 1.3305 ([2/8])–1.2344 ([1/8]). The middle line of Bollinger bands located under the trading range also prevents the instrument form breaking down. Fixing below the line can provide a drop up to the February's lows around 1.3060 ([–2/8]). Otherwise, the rate will return to the level of 1.3305, however, the serious growth is possible only after the breakout of the level. In this case, the targets of the upward movement will be 1.3366 ([3/8]) and 1.3427 ([4/8]).
Technical indicators do not give a clear signal. MACD histogram is at the zero line, its volumes are insignificant. Stochastic is directed downwards.
Support and resistance
Resistance levels: 1.3305, 1.3366, 1.3427.
Support levels: 1.3244, 1.3183, 1.3122, 1.3060.

Trading tips
Short positions can be opened from the level of 1.3220 with the targets at 1.3183, 1.3122, 1.3060 and stop loss around ​​1.3255.
Long positions can be opened above the level of 1.3305 with the targets at 1.3366, 1.3427 and stop loss around 1.3265.
Implementation period: 4–5 days.