On 4-hour chart, USD/CAD bounced off the 1.3297 horizontal-support but is yet to cross the 1.3336 (Murray [5/8]) resistance, that impedes growth to 1.3366 (Murray [6/8]) resistance-line. Additionally, the pair has been trading steadily beyond the 1.3366 could set 1.3397 and the 1.3427 as new buyers targets. If USD/CAD cannot consolidate above the level of 1.3336, the pair will be able to resume the downward trend and retest the level 1.3305 (Murray [4/8]). The mark of 1.3305 seems to be strong support as its break can push the price down to 1.3275 (Murray [3/8])-1.3244 (Murray [2/8]). Technical indicators mostly reflect the moderate maintenance of the overall downward tren. However, the upward correction is possible in the short term. Bollinger Bands are leaning downwards. MACD volumes are slowly decreasing in the negative zone. Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of the upward movement formation.
Support and resistance
Support levels: 1.3305, 1.3275, 1.3244, 1.3214.
Resistance levels: 1.3336, 1.3366, 1.3397, 1.3427.
Long positions can be opened above the level of 1.3336 with the target at around 1.3366-1.3397 and stop-loss 1.3316.
Short positions can be opened below the level of 1.3305 with the target at around 1.3275 and stop-loss 1.3320.The material has been provided by InstaForex Company - www.instaforex.com