On the , the pair is trading below the lower line of . The price remains below its moving averages that are horizontal. The is testing the border of the oversold zone. The Composite is approaching its last month support and is about to form a divergence with the price.
USD/CAD , H4
On the 4-hour chart, the pair is trading below the lower line of . The price remains below its moving averages that are directed down. The keeps falling having entered the oversold zone. The Composite is reaching its critical oversold levels as well.
Support levels: 1.3230 (April lows), 1.3200 (August 2016 highs), 1.3110 (December 2016 lows).
Resistance levels: 1.3315 (local highs), 1.3385 (May lows), 1.3463 (local highs).
The price is approaching its long-term ascending . There is a chance of an upward rebound.
Long positions can be opened after the price rebound form the level of 1.3230 with targets at 1.3315, 1.3385 and stop-loss at 1.3200. Validity – 3-5 days.
Short positions can be opened from the level of 1.3200 with the target at 1.3110 and stop-loss at 1.3230. Validity – 3-5 days.