USD/CAD has come down significantly during this week, currently, the pair is trading at 1.3165 and has a further downside. The immediate support is at 1.3133 while the 1.31000 is a strong support level. The intraday resistance is at 1.3180 another resistance is at 1.3215 area.

The pair is keeping below the moving averages, the SMA-21 indicates a resistance area at 1.3266 and the SMA-50 indicates resistance at 1.3226. The RSI line has gone down to 42 and may enter in a further bearish zone. The MACD is below the zero line and supportive of the bears. Meanwhile, the mid-Bollinger band is at 1.3271 while the lower Bollinger band support is at 1.31179. Currently, the intraday price pattern is strongly bearish and favors sell entries. A decent selling level would be near 1.3170 with a target of 50 to 60 pips. A tight stop-loss for this trade would be just above the 1.3200 resistance area.

Bears need a weekly closing below 1.3100 to take the pair further lower in the coming week. On the upside, only a weekly closing above 1.3260 would provide some support to the bulls.


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By LCMS Traders FX Analysis Team

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