USD/CAD appears to have stabilized around 1.3300 and is currently trading 1.3393. A bullish flag pattern has also emerged, although its too early for the confirmation but the intraday price pattern seems to be hitting the upside.  The immediate resistance is at 1.13415 while other resistances are at 1.3455 and 1.3478 levels. The near term support is at 1.3375 another support area is near 1.3352.

The pair is keeping above the mid-Bollinger band while the upper-band is indicating resistance area at 1.3469. The SMA-21 is indicating support area at 1.3229 and the SMA-50 is showing support at 1.3246. The RSI is at 57 and supportive of the bears. The MACD is also above the zero line and shows no sign of a divergence from the upwards move. Currently, the pair is good to buy only if it breaks above 1.34200 area on the 4-hourly chart. The reasonable take profit for this trade would be at 1.3475 while the stop-loss would be at 1.3380.

The bulls will get further control if they manage to close above 1.3420 (above the flag pattern). On the downside, another closing below 1.3400 may send the pair in a consolidation phase for some time.


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By LCMS Traders FX Analysis Team

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