USD/CAD: technical analysis 16 February 2021, 10:04

USD/CAD: technical analysis

16 February 2021, 10:04

Scenario
Timeframe	Weekly
Recommendation	SELL STOP
Entry Point	1.2590
Take Profit	1.2374
Stop Loss	1.2650
Key Levels	1.2374, 1.2590, 1.2787, 1.3036

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.2787
Take Profit	1.3036
Stop Loss	1.2700
Key Levels	1.2374, 1.2590, 1.2787, 1.3036

Current trend

The USD/CAD pair continues to decline in the global downtrend channel, having rebounded from the resistance line and trading at 1.2629.

At the local interval, the price is preparing to update the local low and move to the stage of a full-fledged downward wave formation. Technical indicators have already issued an updated sell signal. The range of EMA fluctuations on the Alligator indicator began to expand again, and the AO oscillator histogram is trading in the negative area.

Support and resistance

Resistance levels: 1.2787, 1.3036.

Support levels: 1.2590, 1.2374.

Trading tips

If the asset continues to decline and the price consolidates below the local low at 1.2590, short positions will be relevant in order to reach the Fibonacci retracement level of 61.8%, at 1.2374. Stop-loss – 1.2650. Implementation time: 7 days and more.

If the asset reverses and continues growing and the price consolidates above the local resistance level at 1.2787, long positions will be relevant with target at 1.3036. Stop-loss – 1.2700.