Friday, March 23, 2018

Trend reversal on the USD/CAD?

The USD/CAD has broken below the bullish trendline that we can see on the daily chart and it could be signaling a trend reversal. However, the pair may find a good support zone around the 1.2793 level and the 1.2730 level. First of all, the 55 week EMA is crossing around the 1.2793 level, below that area we have the 55 day EMA and the 200 day EMA at the 1.2730 level. We can see now all the factors than coincide around the same zone and that could act as a good support level. The stochastics indicator has space to continue falling, therefore the price of the USD/CAD could also drop some more. On the other hand, if the pair breaks below the 1.2730 level it would have the road clear to drop to the low at the 1.2244 level. In case of a bullish bounce from the current zone, the most relevant resistance level is the peak at the 1.3121 level.

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