USD/CAD has slightly declined after briefly touching a high of 1.3259. Currently, the pair is trading at 1.3164. The decline came in after the US dollar index fell from the 93.63 resistance. The pair’s immediate support is at 1.3122 while other supports are present at 1.3100 and 1.3166 levels. The intraday resistance is at 1.3188 another resistance is present at 132.22.

Despite the decline, the pair is still trading above the mid-Bollinger band while the upper Bollinger band favors a move until 1.3244. The SMA-21 is indicating a support level at 1.3148 and the SMA-50 is showing resistance at 1.3319. The RSI is below 50 while the MACD is also below the zero line. The price pattern on the 4-hourly chart is bullish, however, the intraday chart shows moderate resistance areas near 1.3200 level. Currently, the pair can be traded on both sides.

A buying entry would be recommended if the pair falls to the 1.3122 support level on the 4-hourly period. The target for this trade would be 50 to 60 pips while a tight stop-loss should remain present just below 1.3188.

On the flip side, a sell entry can be taken if the pair manages to move near or at the 1.3188 resistance level. Once again the target would remain small which is between 50 to 60 pips. A tight stop-loss for this trade would be just above the 1.3222 resistance level.

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By LCMS Traders FX Analysis Team

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