USD/CAD is once again moving lower on the weak US Dollar. Currently, the pair is trading at 1.3270 with immediate resistance at 1.33000. Other resistances are at 1.3330 and 1.3370 levels. The intraday support is at 1.3245 while other supports are at 1.3220 and 1.3200.

The pair has also breached below the bullish flag pattern and appears to trade further lower. The SMA-21 is indicating support area at 1.3255 and the SMA-50 is showing support at 1.3238.  Though the moving averages seem to be showing support level, the pair is below the mid-Bollinger band while the lower Bollinger band’s support area is at 1.31490. The RSI has just moved below the neutral zone and appears to be going down further. Currently, the pair is good to sell, a decent selling entry would be at 1.3280 with a target of 50 to 60 pips.  A tight stop-loss for this trade would be just above the 1.3320 area.

An intraday closing below 1.3220 would further accelerate the downtrend. On the upside, bulls need a price action above 1.3350 to get back some control.


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By LCMS Traders FX Analysis Team

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