USDCAD tests the resistance – Analysis - 16-08-2018

The USDCAD pair bounced bullishly yesterday to approach the bearish channel’s resistance at 1.3175, which represents one of the key levels besides 1.3010 support, as the price needs to breach one of these levels to detect its next trend clearly, to continue with our neutrality until now.

The contradiction between the EMA50 positivity and stochastic negativity provides another reason for neutrality, noting that breaking 1.3010 support will push the price to target 1.2923 level initially, while breaching 1.3175 resistance will open the way to extend the bullish wave on the medium term basis to reach 1.3382 as a next main station.

Expected trading range for today is between 1.3030 support and 1.3220 resistance.

Expected trend for today: Depends on the above mentioned levels