USD/CAD has recovered well above 1.3200 level after having dropped to 1.3092 during this week. The move is supported by a slight recovery in the US dollar. The pair’s intraday resistance is at 1.3220, another resistance is at 1.3260. The near term support is at 1.3200 other support areas are at 1.3170 and 1.3145.
The technical levels are currently giving mixed signals, the SMA-14 is indicating a resistance area at 1.3232 while the SMA-50 is showing a support area at 1.3208. The mid-Bollinger band is at 1.3266 a price above this level is likely to send the pair further higher towards 1.3340. RSI has moved up from a bearish zone to the neutral zone. Currently, the price pattern favors buy entries, a decent buying entry would be near 1.32000 with a small target of 50 to 60 pips. A tight stop-loss would be just below the 1.3170 support area.
Bulls are anticipating a weekly closing above 1.3220 to further strengthen their control. On the downside, if USD/CAD ends the week below 1.3140 the chances of a further decline during the next week would be high.
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