USD/CAD, D1
On the daily chart, the pair bounced off the middle MA of Bollinger Bands. The price remains above the EMA130 and EMA65, both directed up. The RSI failed its support in the Bullish zone at 50 mark and formed a divergence with the price. The Composite formed a divergence with the price as well. However, MA’s for both indicators suggest a current weakness of the market.
USD/CAD, H4
On the 4-hour chart, the pair is trading just above the middle MA of Bollinger Bands. The price remains between the EMA130 and EMA65 that are directed horizontally. The RSI turned down as it failed its longer MA. The Composite formed a divergence with the RSI suggesting a fall in the price.
Key levels
Support levels: 1.4176 (EMA130), 1.4114 (local lows), 1.3815 (end of December lows).
Resistance levels: 1.4330 (local highs), 1.4512 (last week highs), 1.4645 (active trade).
Trading tips
Long positions can be opened from the level of 1.4369 with the target at 1.4495 and stop-loss at 1.4325. Validity – 2-3 days.
Short positions can be opened from the level of 1.4110 with the target at 1.4005 and stop-loss at 1.4155. Validity – 1-2 days.