Technical analysis of USD/CAD for July 12, 2018
The pivot point is seen at the point of 1.3190 on the H1 chart. Right now, the price is still trade around the point of 1.3190. The USD/CAD pair probably continues to move downwards from the level of 1.3190, which represents the double top on the H1 chart. The pair dropped from the level of 1.3190 to the bottom around 1.3130. Today, the first resistance level is seen at 1.3227 followed by 1.3190, while daily support is seen at the levels of 1.3130 and 1.3093. According to the previous events, the USD/CAD pair is still trapping between the levels of 1.3227 and 1.3093. Thus, we expect a range of 137 pips in coming hours. The first resistance stands at 1.3227, for that if the USD/CAD pair fails to break through the resistance level of 1.3227, the market will decline further to 1.3130. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.3093 in order to test the second support (1.3093). On the other hand, if a breakout takes place at the resistance level of 1.3224 (50% Fibonacci retracement levels), then this scenario may become invalidated.