USDCAD recovers – Analysis - 26-10-2018

The USDCAD pair bounced upwards clearly yesterday after leaning on the intraday bullish trend line that appears on the chart, to reach the key resistance 1.3128 now, supported by moving above the EMA50, but we notice that stochastic is overbought now, which might press the price to decline.

Therefore, this contradiction between the technical factors makes us prefer staying aside until we get clearer signal for the next trend, noting that breaching 1.3128 will lead the price to achieve more gains and head towards 1.3200 areas initially, while breaking 1.3010 will put the price under the negative pressure again, targeting testing 1.2923 level as a first station.

Expected trading range for today is between 1.3020 support and 1.3200 resistance.

Expected trend for today: Neutral