For Traders

Analytical Reviews

Technical analysis

01.08.201709:55 Forex Analysis & Reviews: Technical analysis of USDCAD for August 1, 2017

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The USD/CAD pair has paused its strong decline just above 1.24 and shows signs of a possible reversal. The minimum bounce target is at 1.27 but if we get a confirmed reversal soon, I expect see this bounce to extend even towards 1.2850-1.29.

Blue line - resistance and trend reversal levels

The short-term trend remains bearish as price is still below the 4 hour Kumo cloud. The short-term support lies at 1.24 while the resistance is found at 1.2575. The price has been moving sideways since 25th of July and bulls will need to break above the cloud and the recent high in order to confirm the change of trend .

Red rectangle - target area

The daily oscillators are turning upwards from the oversold levels after showing bullish divergence signs. The trend remains bearish in the daily chart and only a daily close above the Tenkan-Sen (red line indicator) will be a bullish reversal confirmation. This price level is at 1.2530. Target for the reversal if it has already started lies at 1.28.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.