21.12.201813:06 Forex Analysis & Reviews: Technical analysis of USD/CAD for December 21, 2018

Long-term review

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Overview:

The USD/CAD pair continues moving in a bullish trend from the support levels of 1.3427 and 1.3500. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. As the price is still above the moving average (100), immediate support is seen at 1.3427, which coincides with a golden ratio (61.8% of Fibonacci). Consequently, the first support is set at the level of 1.3500. So, the market is likely to show signs of a bullish trend around the spot of 1.3427/1.3500. In other words, buy orders are recommended to be placed above the golden ratio (1.3427) with the first target at the level of 1.3618. Furthermore, if the trend breaks through the first resistance level of 1.3618, we will see the pair climbing towards the major resistance of 1.3709. It would also be wise to find a place for a stop loss order; it should be set below the second support of 1.3427.

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