The 200 day
EMA usually acts as a good support or resistance zone, especially when there is
a round number level close to it. On the daily chart of the USD/CAD we can see
that the 200 day EMA is right on the 1.3200 level and the price of the pair is
practically at that same zone. Even though the bearish trend is still in place,
the 200 day EMA may act as a support from where the price may try to bounce to
the upside. If the pair bounces to the upside, then the 1.3300 level may act as
resistance. If the pair breaks below the 1.3200 level, then it may try to go
and visit the 1.3100 level from where it may try to stall. Another scenario
that may develop is that the pair may consolidate and go sideways oscillating
around the 1.3200 zone.
I'll watch those levels, thank you.
ReplyDeleteI personally incline it may try to go and visit the 1.3100 level.
ReplyDeleteVery informative article, thanks for sharing!
ReplyDeleteI think it may rebound from 1.3200.
ReplyDeleteImportant levels to keep in mind, thank you!
ReplyDeleteGood to know, thank you.
ReplyDeleteGood analysis.
ReplyDeleteVery good post.
ReplyDelete