Overview:
USD/CAD is expected to trade in a higher range. It is supported by the positive dollar sentiment and weaker oil prices (Nymex crude settled down $1.05 Thursday at $102.07/bbl). But USD/CAD gains are tempered by the loonie demand on CAD/JPY cross amid the weak yen sentiment and positions adjustment before the weekend. The daily chart is mixed as MACD is bullish, stochastics is reverting to the bullish mode, but a five-day moving average is meandering sideways above advancing 15-day MA.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9045 and the second target at 0.9075. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8965. A break of this target would push the pair further downwards and one may expect the second target at 0.8935. The pivot point is at 0.8900.
Resistance levels:
0.9040
0.9075
0.91
Support levels:
0.8965
0.8935
0.8910
