USD/CAD is expected to trade with bearish bias. The pair is reversing downwards while staying below its key resistance at 193.85. The 20-period intraday MA has just crossed below its 50-period one, confirming the intraday trend reversal. And the intraday RSI is below 50 and lacks upward momentum. The first target to the downside is therefore set at the low of 192.20. A break below this level would open the way for further weakness towards the 191.95 low of August 19 in extension. Only a break above the key resistance at 193.85 would call for further upside.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 192.20. A break of that target will move the pair further downwards to 191.95. The pivot point stands at 193.85. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 194.55 and the second target at 191.95.
Resistance levels: 194.55 194.95 195.30
Support levels: 192.20 191.95 191.35
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