USD/CAD: technical analysis and trading recommendations_01/20/2021
At the beginning of today's European session, the USD / CAD pair is traded near the 1.2695 mark, remaining in the bear market zone and maintaining a tendency to further decline, including amid strong fundamental factors.
The pair remains within the descending channels on the daily and weekly charts, below the important long-term resistance levels of 1.3090 (ЕМА200 on the weekly chart), 1.3165 (ЕМА200 on the daily chart), 1.2740 (38.2% Fibonacci level of the downward correction in the wave of USD / CAD growth with level 0.9700 to level 1.4600), as well as below important short-term resistance levels 1.2797 (ЕМА200 on the 4-hour chart), 1.2724 (ЕМА200 on the 1-hour chart).
The pair continues to decline towards the support level 1.2450 (ЕМА200 on the monthly chart). Its breakout will finally return USD / CAD to a multi-year bearish trend. So far, everything is in favor of short positions and further decline.
In an alternative scenario, a buy signal will be a breakdown of the resistance level 1.2724 with the prospect of growth towards resistance level 1.2797. Below these resistance levels, only short positions should be opened in USD / CAD. Only a breakdown of the resistance levels 1.3090, 1.3165 can give hope for the restoration of the bullish trend in USD / CAD.
Support levels: 1.2640, 1.2600, 1.2450
Resistance levels: 1.2724, 1.2740, 1.2797, 1.2900, 1.3000, 1.3090, 1.3165, 1.3300, 1.3450
Sell by market. Stop-Loss 1.2750. Take-Profit 1.2640, 1.2600, 1.2500, 1.2450
Buy Stop 1.2750. Stop-Loss 1.2685. Take-Profit 1.2800, 1.2900, 1.3000, 1.3090, 1.3165, 1.3300, 1.3450