USD/CAD is hovering around 1.3370 area for past two days, the pair has gained upwards momentum on the rebound in the USD. Currently, the pair is trading at 1.3378 with immediate support at 1.3354 while other support areas are at 1.3338 and 1.3326. The near term resistance is at 1.3380 and the 1.3400 is a stiff resistance area for the pair.

The MACD is currently above the zero line while the signal line is fully supportive of the bulls. The RSI has also gone up to 56 and appears to enter in a further bullish zone. However, the pair has got supportive a rebound in the USD and the US dollar is currently trading near a moderate resistance area (94.60) and should be observed closely. The SMA-21 is indicating support at 1.3184 and the SMA-50 is showing support area at 1.3251. The mid-Bollinger band is at 13240 while the upper-Bollinger band favors a move until 1.3405. Based on the price pattern on intraday and 4-hourly scale the pair is good to buy on dips. A decent buying entry would be near or at 1.3345 with a target of 1.3390. A tight stop loss for this trade would be at 1.3315.

A weekly closing above 1.3400 is needed for the bulls to take the pair further higher. On the downside, a weekly closing below 1.3280 may once again trigger the sell-off.

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By LCMS Traders FX Analysis Team

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