Technical analysis USD/CAD for January 31, 2019

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Overview:

The USD/CAD pair continues to move downwards from the level of 1.3178. Yesterday, the pair dropped from the level of 1.3178 to the bottom around 1.3117. But the pair has rebounded from the bottom of 1.3117 to close at 1.3139. Today, the first support level is seen at 1.3117, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 1.3178, which coincides with the 23.6% Fibonacci retracement level. This resistance has been rejected several times confirming the veracity of a downtrend. Additionally, the RSI starts signaling a downward trend. As a result, if the USD/CAD pair is able to break out the first support at 1.3117, the market will decline further to 1.3068 in order to test the weekly support 2. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.3178 with the first target at 1.3068 and further to 1.3025. However, stop loss is to be placed above the level of 1.3246.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of USD/CAD for January 31, 2019

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