USD/CAD has moved below 21 periods moving average and is currently trading at 1.3243. The pair has dropped on the selling pressure in the USD. The US dollar index is currently near a strong resistance area of 93.60. The pair’s immediate support is at 1.3215 other supports are at 1.3170 and 13133 levels. The intraday resistance is at 1.3272 and the 1.3300 level is now likely to act as a stiff resistance area.

The SMA-21 is indicating resistance at 1.3270 while the SMA-50 is showing support at 1.3232. The pair is also below the mid-Bollinger band while the lower Bollinger band support line is at 1.3124. The RSI is below the neutral zone and is in line with the downwards move. The price pattern on the intraday chart is strongly bearish. The 4-hourly chart is also bearish and favoring intraday sell entries. A decent selling level would be at 1.3265 with a small target of 50 to 60 pips. A tight stop-loss for this trade would be just above the 1.3300 resistance area.

An intraday closing below 1.3200 is likely to send the pair further lower towards 131.20. On the upside, only an intraday closing above 1.3300 would provide some control back to the bulls.


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By LCMS Traders FX Analysis Team

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