The cross has been making multiple tops at 1.4120, forming negative divergence in the daily chart. The same divergence we can observe in the USD/CAD H4 chart. In the H1 chart, the cross is moving towards lower highs and lower lows. The trend favors buying with sl 1.3870. The monthly support is found at 1.3780 and resistance is seen at 1.4365. The parallel resistance is seen at 1.4254 and 1.4320 100Wsma. A daily close above 1.4120 is likely to enable bulls to aim for 1.4250 and 1.4320 in a day or two.
Intraday support is found at 1.3985 and 1.3960. Resistance is seen at 1.4030, 1.4060, and 1.4100. Strong buying momentum is available above 1.4130. We express optimism in our longer-term forecast.
The material has been provided by InstaForex Company – www.instaforex.com