USDCAD Technical Analysis Report for the Week Ahead – 31-03-2018
4Hr Chart (1.2867)
As per the 4 hour USDCAD candle stick chart, we can notice that the currency pair has broker and trading below its upward trend line. The pair is also trading below its support lines of 1.2918 and 1.2881 as well as trading below its medium term moving average. It seems like after a long upward movement the currency pair is having some correction. As per our analysis and technical indicators, we are expecting the currency pair to depreciate from its current levels. We are expecting the currency pair to take support at 1.2622 levels and may bounce back from those levels. Any breakout below 1.2610 levels may force the currency pair to depreciate further to 1.2446 and 1.2380 levels. And again at 1.2380 levels one can have a ideal buy strategy for the long term. Still risk management is important so one should trade with appropriate stop loss. Any breakouts of support or resistance levels are important as breakouts may trigger further movement in the same direction.
Major Support and Resistance:
Resistance: 1.2881, 1.2918, 1.3001, 1.3123, 1.3182, 1.3287, 1.3483, 1.3568
Support: 1.2810, 1.2746, 1.2662, 1.2622, 1.2446, 1.2393, 1.2380, 1.2281, 1.2144, 1.2062
So as per the technical analysis, the ideal strategy for trading USDCAD in the next few days should be selling below 1.2881 levels with a stop above 1.2920 and target around 1.2630 and 1.2390 levels. And one may buy the pair around 1.2620 and 1.2380 levels with a 35 pips stop loss or buy above 1.2945 levels with 35 pips stop for a target of 1.3120.
Any trigger of stop may indicate further revision of strategies as stop loss trigger can drag the prices further in the same direction of stop loss. So one should be careful and should watch the prices for some time before taking any decision on such events.
Major Support and Resistance:
Resistance: 1.2881, 1.2918, 1.3001, 1.3123, 1.3182, 1.3287, 1.3483, 1.3568
Support: 1.2810, 1.2746, 1.2662, 1.2622, 1.2446, 1.2393, 1.2380, 1.2281, 1.2144, 1.2062
So as per the technical analysis, the ideal strategy for trading USDCAD in the next few days should be selling below 1.2881 levels with a stop above 1.2920 and target around 1.2630 and 1.2390 levels. And one may buy the pair around 1.2620 and 1.2380 levels with a 35 pips stop loss or buy above 1.2945 levels with 35 pips stop for a target of 1.3120.
Any trigger of stop may indicate further revision of strategies as stop loss trigger can drag the prices further in the same direction of stop loss. So one should be careful and should watch the prices for some time before taking any decision on such events.