Review and dynamics
At the end of April the pair USD/CAD reached the annual lows at the level of 1.2525. Since the beginning of June the price has been in the range of 1.2635 (Fibonacci 50% to the rise since July 2014 at the level of 1.0650) and 1.3100 (ЕМА200 and ЕМА144 on the daily chart and Fibonacci 38.2%).
On the daily, weekly and 4-hour charts the indicators OsMA and Stochastic give signals for long positions; on the monthly chart the indicators have also reversed towards the lone positions.
Given the rise in the USD and the decline in oil prices, there is a high chance that the price will break out resistance level of 1.3100 and go further up to 1.3300 and 1.3680 (Fibonacci 23.6%).
An alternative scenario will suggest that after breakout of the support level of 1.2950 (ЕМА50 on the daily chart, ЕМА200, ЕМА144 on 4-hour chart), the pair will go back to the range.
Breakout of the level of 1.2845, which is close to the lower line of the narrowing triangle, will signal that the downtrend in the pair can resume. The nearest targets will be the levels of 1.2730, 1.2635 and 1.2525.
Support levels: 1.3000, 1.2950, 1.2880, 1.2845, 1.2730, 1.2635 and 1.2525.
Resistance levels: 1.3100, 1.3185, 1.3200, 1.3300, 1.3400, 1.3500 and 1.3680.
Buy Stop: 1.3085. Stop-Loss: 1.3035. Take-Profit: 1.3100, 1.3185, 1.3300, 1.3400 and 1.3600.
Sell Stop: 1.3030. Stop-Loss: 1.3075. Take-Profit: 1.2950, 1.2845, 1.2800, 1.2730, 1.2635 and 1.2525.
At the resistance level of 1.3100
Long positions are more preferable