FxWirePro: USD/CAD downtrend loses steam, outlook bullish
The USD/CAD gained some ground on Tuesday, as oil prices plummeted towards 34$ per barrel. Oil prices plunged nearly five percent on Monday as weak economic data from China the largest consumer of energy resources, weigh…
The USD/CAD gained some ground on Tuesday, as oil prices plummeted towards 34$ per barrel. Oil prices plunged nearly five percent on Monday as weak economic data from China the largest consumer of energy resources, weighted on the prices of crude oil and OPEC sources played down talk of emergency meetings to control demand and supply.
The short term picture favors further advances, as the price is now well above 9 DMA, whilst the technical indicators slowly gaining strength, as price action is in oversold levels. In the 4 hours chart, the MA's 55, 30, 20 is slowly changing direction towards upside. The RSI indicator is turning up.
To the upside, the strong resistance can be seen at 1.4160, a break above will take the pair towards next resistance level at 1.4200.
To the downside immediate support can be seen at 1.3404 levels, a break below will open the door towards next level at 1.3924.
Recommendation: Go long around 1.4000, targets 1.4080, 1.4160, SL 1.3890
