USD/CAD has slightly recovered above the 1.3100 level which is mainly attributed to the recovery in the USD and the recent decline in the crude oil price which has once again moved below the $40 mark. The US dollar index is currently at 93.18 and looks to test the 93.63 resistance level. The pair’s immediate support is at 1.3080 while stronger supports are present at 1.30450 and 1.3020. The intraday resistance is at 1.3165 another resistance is present at 13190 levels.
The RSI has moved significantly above the bearish zone although it is still far from a bullish zone but seems in line with the recovery. The mid-Bollinger band is around the current market price while the upper-Bollinger band favors a move until 1.3221. However, the moving averages are still above the current price, the SMA-21 shows resistance at 1.3153 while the SMA-50 indicates resistance at 1.3333. The price pattern on the 4-hourly chart is slightly more bullish and favors intraday buy entries. A good buying level would be at or near 1.3100 with a target of 50 to 60 pips. A decent stop-loss for this trade would be just below the 1.3065 level.
The pair might not enter into a full-fledge upwards trend until a clear break out above 1.3220. On the downside, only closing below 1.3060 would pose a risk of a further drop below 1.3000.