FX.co ★ Technical analysis of USD/CAD for May 20, 2015

We advised buying earlier. The pair moved 330 pips from lows. Bulls have been extending the winning streak for the fourth consecutive day. At yesterday's session, the pair managed to close above 100Dema. The trend-change level lies at 1.2350. In case of a daily close above 1.2350, bulls will aim at new highs. Last Friday, we covered a complete technical picture of this pair. The USD related pairs have been correcting for more than 2 months. On the downside, support is found at 1.2175 100Dema and 1.2090 200Dsma. In the daily chart, the pair has been forming the bottom around 1.1940, whereas the strong support is found at 1.1875. The intraday resistance is seen between 1.2250 and 1.2280. The strong resistance is seen at 1.2350. In the daily chart, we can observe positive divergence. The bottoming process is a very painful process after a sharp fall in the price. In case the FOMC's decision remains unchanged, the pair will correct with higher low formation. In the daily hourly chart, the double top was formed at 1.2250. We recommend fresh buying only above 1.2250 with targets at 1.2280, 1.2300, and 1.2350.

To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com