USD/CAD: technical analysis and trading recommendations_02/05/2021
At the beginning of today's European session, the USD / CAD pair is traded near the mark of 1.2800, still maintaining the tendency to further decline, including against the backdrop of strong fundamental factors.
The pair remains within the descending channels on the daily and weekly charts, below the important long-term resistance levels of 1.3090 (ЕМА200 on the weekly chart), 1.3120 (ЕМА200 on the daily chart).
Staying below the key resistance levels 1.3100, 1.3200, in fact, USD / CAD is in the bear market zone. The pair is decreasing towards the key and long-term support level 1.2450 (ЕМА200 on the monthly chart). Its breakdown will strengthen the tendency to further decline, and a breakdown of the support level 1.2170 (Fibonacci level 50% of the downward correction in the wave of USD / CAD growth from 0.9700 to 1.4600 mark) will finally return USD / CAD into a long-term bearish trend. So far, everything is in favor of short positions and further decline.
Nevertheless, it is worth paying attention to the breakdown of the important short-term resistance levels 1.2784 (EMA200 on the 4-hour chart), 1.2789 (EMA200 on the 1-hour chart), which is a signal for a possible reversal and breaking of the bearish trend.
A breakdown of the local resistance level 1.2880 will confirm the revival of the bullish trend in USD / CAD and the prospect of growth to the resistance levels 1.3040, 1.3090, 1.3120.
Support levels: 1.2789, 1.2784, 1.2740, 1.2640, 1.2590, 1.2450, 1.2170
Resistance levels: 1.2880, 1.3040, 1.3090, 1.3120, 1.3200, 1.3300, 1.3450
Sell Stop 1.2760. Stop-Loss 1.2855. Take-Profit 1.2740, 1.2640, 1.2590, 1.2450, 1.2170
Buy Stop 1.2855. Stop-Loss 1.2760. Take-Profit 1.2880, 1.3040, 1.3090, 1.3120, 1.3200, 1.3300, 1.3450