By IFCMarkets
Hello to all traders out there. Today we are going to look into the US dollar against the Canadian dollar chart pattern. The currency pair dipped below the previous support at 1.0811 the last week and that increased its bearish momentum, leading to as low as 1.0713. Down trend pattern now prevails in the chart and for that reason we consider that currency pair will move to lower prices. The SMAs are above prices and most likely going to work as natural resistances in case prices attempt a pull back.
However Oscillators are gradually becoming oversold. The Stochastic is well into the oversold zone and has dropped to 3.57 line. The OsMA at the same time is close to previous troughs line but still has some room to go lower. Perhaps with OsMA we should draw a lower trough line given that the currency pair is down trending. In our opinion and based that analysis, prices are most likely going to continue lower since there is not any major support to limit downside bias and contrarian indications are not confirmed yet by OsMA. Possible next support levels are likely the 1.0668, ahead of the 261.8% of 1.0811 to 1.0960, at 1.0579.
Questions and suggestions:analytics@ifcmarkets.com
Market Analysis provided by IFCMarkets