USD/CAD Analysis

[Elliot Harris]

Yesterday, the USD/CAD traded higher and closed the day in positive territory around 1.3765. Today, the pair traded in a narrow range of 1.375–75, remaining close to yesterday's closing price. The hourly chart shows USD/CAD trades below the moving average line MA (200) H1 (1.3790). The pair remains above the MA 200 H4 line on the four-hour chart. Based on the above, it is probably worth sticking to the southern direction in trading, and while the pair remains below MA 200 H1, it may be necessary to look for entry points to sell at the end of the correction.

• Resistance levels are at 1.3780, 1.3805–15, and 1.3850.
• Support levels are at 1.3735, 1.3660, and 1.3630.

The main scenario is probably a resumption of the decline to 1.3735 (the low of the American session on November 7).

The alternative scenario is consolidation above the MA 200 H1 line, followed by growth to 1.3895 (Nov. 1 high).