The current technical pattern signals a possible correction of the USD/CAD currency pair after a significant drop since the beginning of the current month. A classic reversal formation has been formed in the trading instrument – divergence of price and MACD histogram (H1 timeframe). Loonie is currently consolidating. Local resistance is the level of 1.31650. We recommend paying attention to this situation.
If the price fixes above 1.31650, USD/CAD purchases should be considered. The immediate goal for profit-taking is the round level of 1.32000. The movement is tending to 1.32300-1.32650. Confirmations and market entry points should be looked for on lower timeframes. When tracking positions, we recommend using a trailing stop.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account