USD/CAD has entered the correction mode after hitting a high of 1.2805. The pair is currently trading lower at 1.2578 with immediate support levels at 1.2555 and 1.2515. The intraday resistance levels are at 1.2612 and 1.2669.

On the intraday charts, the correction seems to be extending towards the mid-Bollinger band which is at 1.2481. The SMA-14 is indicating support at 1.2533 and the SMA-50 support line is at 1.2281. The RSI is at 58 and the MACD is still above the middle line. Following the correction phase, the pair is presenting opportunities on both sides. A sell entry would be ideal using the following levels.

Direction: Sell
Entry: 1.2600
Take Profit: 1.2550
Stop-Loss: 1.2628

On the flip side, a drop towards 1.25000 would favor buying entries using the following levels

Direction: Buy
Entry: 1.2525
Take Profit: 1.2580 – 1.2620
Stop-Loss: 1.2490

Considering the correction, the pair is likely to remain range-bound between 1.2500 and 1.2630 and only a breakout above or below these levels would determine the future moment of the pair.

 

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By LCMS Traders FX Analysis Team

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