USD/CAD: technical analysis and trading recommendations_05/20/2021


At the beginning of today's American session, the USD / CAD pair is traded near the mark of 1.2127, 4 pips above the important short-term support level 1.2123 (EMA200 on the 1-hour chart).

A breakout of this level and growth into a zone above it is a bullish signal for USD / CAD. The breakdown of the important resistance level 1.2302 (ЕМА200 on the 4-hour chart) will confirm the bullish scenario with the prospect of growth to the resistance levels 1.2640 (ЕМА144 on the daily chart), 1.2760 (ЕМА200 on the daily chart).

Below the resistance levels 1.2302, 1.2365, the long-term downward dynamics of the USD / CAD pair, which has been actively declining since March 2020 against the background of a weakening USD and an increase in oil prices, remains.

Remaining below the key resistance levels 1.2760, 1.2740 (Fibonacci level 38.2% of the downward correction in the wave of USD / CAD growth from 0.9700 to 1.4600) USD / CAD is in the bear market zone. A breakdown of the support level 1.2123 will be a signal for the resumption of short positions.

Support levels: 1.2100, 1.2015, 1.2000

Resistance levels: 1.2123, 1.2160, 1.2302, 1.2365, 1.2450, 1.2640, 1.2760, 1.3000

Trading scenarios

Sell Stop 1.2095. Stop-Loss 1.2150. Take-Profit 1.2015, 1.2000

Buy Stop 1.2150. Stop-Loss 1.2095. Take-Profit 1.2302, 1.2365, 1.2450, 1.2640, 1.2760, 1.3000