Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

USD/CAD Rebounds from a Medium-Term Uptrend Line

USD/CAD has been in a recovery mode since yesterday, when it found support near the crossroads of the 1.3070 level and the uptrend line drawn from the low of the 17th of April. Bearing in mind that the rate continues to trade above that line, we would consider medium-term outlook to stay cautiously positive.

The rate now looks to be headed towards the 1.3160 resistance zone, and if the bulls are strong enough to overcome it, then we may see them driving the battle higher, perhaps for a test near the 1.3225 hurdle, defined by the peak of the 2nd of July. Another break above that level could pave the way for our next resistance of 1.3265.

Turning attention to our short-term oscillators, we see that the RSI edged north and just poked its nose above its 50 line, while the MACD, although negative, stands above its trigger line and points up. What’s more, there is positive divergence between both these indicators and the price action. All these momentum signs corroborate our view that USD/CAD may be poised to continue drifting higher, at least for a while more.

On the downside, if the bears manage to take charge from current levels, we may see them aiming for another test near the aforementioned uptrend line. That said, even if this is the case, we would still see a cautiously positive picture as the bulls may once again take advantage of the rate’s proximity to the trendline. We would like to see a clear dip below 1.3045 before we start examining the case of a trend reversal. Such a dip may set the stage for extensions towards our next support territory, near 1.2960.

USDCADH4 100718



The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.