Forex: USD/CAD: Recent downtrend under threat?

on Jul 29, 2013
Listen Monday July 29th_: Last week the pair continued the downslope from the 5 July top of 1.0608 to shed 0.85 percent for the week. The weekly candle closed at 1.0268 after reaching a 30-day low of 1.0254 on 25 July.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

The high of 1.0608 happened to be at a supply zone from 1.0470 to 1.0656, terrain affording good entry points for the bears.
The recent downward movement was also influenced by the descending 89-month simple moving average, at which point the prior upwards movement went into reverse. The falling 89-hour simple moving average is also supporting the short-term bearish sentiment by floating above the price levels.

At week’s end the rising trendline, which connects the bottoms of 8 May and 16 June, was broken to the downside, which could produce further decline, though the price action seems to have since slowed with the pair moving sideways and not establishing lower lows.
Since 25 July the MACD (9,12,1) has been residing in a convergence mode on the 4H chart, which counters the overall bearish mood.
So far today the pair has been trading within a shallow 22-pip range. Currently the quote is at 1.0275.
Resistance levels for today: 1.0282, 1.0300 and 1.0310.
Support levels: 1.0260, 1.0250 and 1.0230.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

Learn more
CAD Forex