Sep 17, 2020, 10:23:52 AM
USD/CAD: technical analysis
Current trend
The pair has been showing a slight decline since the opening of the session, trading at 1.3224.
The global downward channel was interrupted. The price consolidated above the resistance line, forming a local Head and Shoulders pattern. In the near future, it is highly likely that the price will continue to rise and the reversal pattern will be realized. Fast EMAs of the Alligator indicator crossed the signal one from below, and the histogram of the AO oscillator moved into the positive zone, confirming the buy signal.
Support and resistance
Resistance levels: 1.3240, 1.3360.
Support levels: 1.3195, 1.3130.
Trading tips
If the asset reverses and continues growing and the price consolidates above the local high at 1.3240, long positions will be relevant with target at 1.3360. Stop-loss – 1.3200.
If the asset continues to decline, and the price consolidates below the local support at 1.3195, short positions can be opened with the target at 1.3130. Stop-loss – 1.3220.
Implementation time: 5 days and more.
Scenario
-
Timeframe
Weekly
-
Recommendation
BUY STOP
-
Entry Point
1.3240
-
Take Profit
1.3360
-
Stop Loss
1.3200
-
Key Levels
1.3130, 1.3195, 1.3240, 1.3360
Alternative scenario
-
Timeframe
Weekly
-
Recommendation
SELL STOP
-
Entry Point
1.3195
-
Take Profit
1.3130
-
Stop Loss
1.3220
-
Key Levels
1.3130, 1.3195, 1.3240, 1.3360
