USD/CAD has largely traded in a narrow range of 1.3120 and 1.3150 since the start of this week. Currently, the pair is trading at 1.3137 and the price pattern has now turned further bearish. The immediate support is at 1.3100 other supports are at 1.3060 and 1.3055 levels. The intraday resistance is at 1.3160 another resistance is present near 1.3185 area.

The pair is keeping below the moving averages, the SMA-14 is indicating resistance at 1.3251 while the SMA-50 is showing resistance area at 1.3219. The Mid Bollinger band is at 1.3260 and the lower band support area is at 1.30755. The RSI is at 41 and the line appears to be going down further. The intraday price pattern is bearish while on the 4-hourly chart a strong resistance area is present near 1.3160. Currently, the pair is good to sell on intraday bases. A decent selling point would be near 1.3160 (intraday resistance) with a small target of 50 to 60 pips.  A tight stop-loss for this trade should remain present at 1.3210.

A break below 1.3100 is likely to take the pair further lower towards testing the 1.3000 support area. On the upside, only an intraday closing above 1.3240 would provide some support to the bulls.


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By LCMS Traders FX Analysis Team

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