USD/CAD: technical analysis 15 January 2021, 11:38

USD/CAD: technical analysis

15 January 2021, 11:38

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	1.2700
Take Profit	1.2834
Stop Loss	1.2630
Key Levels	1.2500, 1.2690, 1.2700, 1.2834

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.2690
Take Profit	1.2500
Stop Loss	1.2800
Key Levels	1.2500, 1.2690, 1.2700, 1.2834

Current trend

The USD/CAD pair is demonstrating an upward trend, trading at 1.2662.

Globally, the instrument is decreasing within the global downwards channel but at the local interval, the price is actively reversing, returning to an uptrend. Technical indicators are in a sell state but they are ready to give a signal about a possible reversal. Fast EMAs on the Alligator indicator are below the signal one, and the histogram of the AO oscillator is trading in the negative zone.

Support and resistance

Resistance levels: 1.2700, 1.2834.

Support levels: 1.2690, 1.2500.

Trading tips

After reversal and growth or consolidation above the local resistance level of 1.2700, buy positions with the target at 1.2834 will be relevant. Stop loss is 1.2630. Implementation period: 7 days or more.

After decline or consolidation below the local support of 1.2690, sell positions with the target at 1.2500 will be relevant. Stop loss is 1.2800.