Being above the key support levels 1.3055 (EMA200 on the daily chart), 1.2920 (EMA200 on the weekly chart), USD/CAD remains in the bull market zone.
As we mentioned in today’s “Fundamental Analysis”, in general, the upward dynamics prevails. However, a breakthrough into the zone below the support levels of 1.3475 (EMA50 on the daily chart), 1.3450 (Fibonacci level 23.6% of the downward correction in the USD/CAD growth wave from 0.9700 to 1.4600) will increase the risks of breaking the bullish trend, sending it to the side key support levels 1.3150 (EMA 144 on the daily chart), 1.3055.
In the main scenario, we expect a rebound from the support level of 1.3570 (EMA200 on the 4-hour chart and the lower line of the rising channel on the daily chart) and the resumption of growth. Breakdown of resistance levels 1.3640 (EMA200 on the 1-hour chart), 1.3685 (local resistance level) will be a confirming signal for long positions.
In general, the USD/CAD bullish trend prevails, and given the strong upward momentum, it is logical to assume further growth.
Support levels: 1.3570, 1.3500, 1.3475, 1.3450, 1.3150, 1.3055, 1.2920
Resistance levels: 1.3640, 1.3685, 1.3800, 1.3830, 1.3900, 1.3977, 1.4000
Trading scenarios
Sell Stop 1.3535. Stop Loss 1.3610. Take-Profit 1.3500, 1.3475, 1.3450, 1.3150, 1.3055, 1.2920
Buy Stop 1.3610. Stop Loss 1.3535. Take-Profit 1.3640, 1.3685, 1.3800, 1.3830, 1.3900, 1.3977, 1.4000
The material has been provided by InstaForex Company – www.instaforex.com
