USD/CAD is finding support around 1.3000, in today’s session, the pair has moved 0.27% higher to 1.3070. The uptick is likely attributed to the US dollar that has recovered to a new weekly high. The pair’s immediate support is at 1.3040 while the 1.3000 is now acting as a major support area. The near term resistance is at 1.3085 another resistance can be seen around 1.3145 area.
On yesterday’s closing, a gravestone Doji pattern has emerged which is indicating the bears may have run out of steam. The RSI has slightly moved above the bearish zone while the MCAD is indicating a possible bullish crossover. The pair is currently good to buy on dips. A reasonable buy entry would be at 1.3050 with a target of 50 to 60 pips. A tight stop-loss would be just below the 1.3000 support level.
Closing above 1.3140 would be needed for the bulls to keep the control. On the downside, 1.300 is acting as a major support level and only a breach below this level would provide some support to the bears.