USD/CAD: technical analysis
25 January 2021, 11:48
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 1.2660 |
| Take Profit | 1.2600 |
| Stop Loss | 1.2690 |
| Key Levels | 1.2590, 1.2630, 1.2670, 1.2730, 1.2770, 1.2800 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 1.2730 |
| Take Profit | 1.2780 |
| Stop Loss | 1.2700 |
| Key Levels | 1.2590, 1.2630, 1.2670, 1.2730, 1.2770, 1.2800 |
USD/CAD, H4
A sideways trend is forming on the 4-hour chart. The instrument is consolidating in the area of the middle line of Bollinger bands, the indicator cloud is narrowing, it is likely that sideways dynamics will remain in the short term. The MACD histogram is in the area of the zero line, its volumes are minimal, the signal line reverses upwards, and the sell signal loses its relevance. Stochastic crosses the border of the overbought zone downwards, forming a signal to open short positions.
USD/CAD, D1
On the daily chart, there is a correction of the downward movement. The instrument is trading in the area of the middle line of Bollinger Bands, the indicator cloud is narrowing, which indicates the likely formation of a sideways trend in the mid-term. The MACD histogram is in the negative area, maintaining a signal to open short positions. Stochastic is in the neutral zone, the oscillator lines move horizontally, without forming a definite signal to enter the market.
Key levels
Resistance levels: 1.2730, 1.2770, 1.2800.
Support levels: 1.2670, 1.2630, 1.2590.
Trading tips
Short positions may be opened from the level of 1.2660 with the target at 1.2600 and stop loss 1.2690. Implementation period: 1–3 days.
Long positions may be opened from the level of 1.2730 with the target at 1.2780 and stop loss 1.2700.
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