- USD/CAD trades 0.23% higher as the greenback bounces back.
- The pair also found support at the channel support line.
USD/CAD 4-hour chart
USD/CAD has been moving higher and this comes off the back of some weakness in oil and a general dollar rebound. The dollar has been selling off heavily in recent weeks and there is nothing to suggest this trend is over just yet.
Looking at the chart, the channel is marked in black and at the bottom right, the price has clearly bounced off the low. This low also influenced with the 1.30 psychological level which could be important once again in the future.
The indicators are also turning positive. The Relative Strength Index has moved above the oversold area but is not yet above the 50 mid-level. The MACD has now turned green but the signal lines are still way below the midpoint.
There is lots to do in this pair before we can say the trend has turned. There is a key resistance level at the red line near 1.3150 and if this gets broken it could be another sign that the downtrend may be coming to an end. Lastly, there is another level higher up that should be noted at 1.3250. This zone has been tested five times on this chart alone and might be another sticky point if the bulls do manage to mount an upside challenge.