USD/CAD - USD/CAD Fell and Profit Booked - 10/18/2016 (GMT)

This week the focus will return to Canada and its economy with the Bank of Canada interest rate decision. The USD/CAD is establishing within a rising channel over the last five months and made several attempts to break this pattern.

During yesterday the pair challenged the 1.3180 resistance level which overlaps with the 100-SMA on the 4-hour chart, however, the price dropped 0.4% after the rebound on the latter level. Moreover, the commodity pair reached our suggested target at 1.3100 psychological level and slipped below it (see our technical analysis here: http://bit.ly/2e3iQHx). The next level to watch is the 1.3030 support level which coincides with the 100-daily SMA. Therefore, if the price surpasses the aforementioned psychological level will probably retest the 1.3180 barrier.

Going to a lower timeframe, the technical indicators seem to be in agreement with the bearish attitude since MACD and RSI are following a negative territory. The MACD oscillator lies below its trigger and zero lines with strong momentum whilst the RSI indicator is moving near the 30 level.