Thursday, 28 July 2016

USD/CAD showing mixed signs

USD/CAD pushed higher on Monday, reaching high at 1.3239, which is the highest level for the last four months. But due to the lack of macro news that could stir the market more significantly, the weak crude oil prices dragged the pair down. Since then the pair is trading sideways within a tight rage. On Wednesday the USD dollar was boosted due to Fed’s decision to keep the rate unchanged and consequently USD/CAD drew near the four month lows.
First resistance is located at 1.32119. A possible break above will drag USD/CAD to the temporary top marked at 1.32547. On the downside, the support is seen at 1.3093
OBV confirm the sideway movement. But as on Monday the pair ticked higher and the OBV is staying below May’s levels. It seems that bulls are not attracted  by this divergence, as the volume on up candles is not strong enough.


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