USD/CAD: technical analysis
1. Current trend
At the beginning of the month the pair hit again the local maximum of the autumn 2011, then USD/CAD started to decrease. After that the pair was trading within 1.037-1.043 range. Bears tried to break down the level 1.0370, which corresponds to 50.0% of Fibonacci lines and they have finally succeeded. The next support levels won’t stop the fall either.
Stochastic lines are in overbought zone, giving a signal to sell. Signal line and histogram of MACD indicator are in negative zone. Volumes of the histogram are decreasing, signal line is directed upwards. All three MA are directed downwards.
2. Support and resistance
The pair is testing support level at 1.0300. The next support lines will be 1.0270 and 1.0230. Resistance levels are 1.0325, 1.0350 and 1.0375.
3. Trading tips
Further decrease of the course is most probable. The pair will go down to 1.0200, however the correction towards levels 1.0325 and 1.0375 is also possible. Sell limit orders can be placed at these levels.
Ilya Lashenko
Analyst of LiteForex Group of Companies.