USD/CAD Daily Analysis
USD/CAD has finally breached below the narrow trading range and is currently lower at 1.2436. The intraday support levels are at 1.2400 and 1.2377. The near-term resistance areas are at 1.2464 and 1.477.
On the intraday charts, the pair’s outlook now appears strongly bearish. The RSI is at 34 and appears to be entering deep into the oversold zone. The mid-Band is at 1.2597 while the upper and lower bands are at 1.2834 and 1.2360 respectively. The SMA-14 is indicating resistance at 1.2527 and the SMA-50 resistance line is at 1.2671. Following the bearish momentum and analyzing the intraday price pattern suggests a further drop towards 1.2370 which makes the pair ideal for selling entries. A reasonable selling entry will be at or near 1.2450 with a target of 60 to 70 pips. An ideal stop-loss for this trade will be at 1.2485.
Bulls require a sustained price action to stay above the 1.2400 level. Failing to achieve that will further strengthen the bears and the possibility of a drop towards 1.2330 towards the end of this week will be high.
