Trading Signal for USD/CAD for August 11 - 12, 2021: Key level is 1.2500

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The USD / CAD pair has found strong resistance at the 1.2573 area, there is the 7/8 murray line that indicates a bearish reversal signal, the last 4-hour candles show that the Canadian dollar quickly fell below from this resistance level to find support above the 200 EMA.

In the 4-hour chart, we can see that the Canadian dollar is trading within an uptrend channel, the technical rebound at this level could give it a new upward momentum to challenge the 7/8 murray line and reach the 8/8 of murray located at 1.2695.

The Canadian dollar is a currency linked to the supply and demand of crude oil. Yesterday, after crude reached the level of 65 dollars per barrel, it changed direction and made a rebound, which gave strength to the USD/CAD, and achieved drop below 1.2580.

The US dollar index #USDX, is located above the resistance zone around the level of 93.05, there is the 7/8 line of murray that has now become its support. The objective for the dollar is to continue rising to the 93.75 strong resistance zone. This will weaken it and the loonie may rise to the 1.2695 and 1.2804 levels in the short term.

On the other hand, the psychological level of 1.2500, will now be the immediate support. There it converges to the EMA of 200 and the line of the bullish channel. A price break and consolidation below this level could accelerate the decline to the 6/8 murray line, key support located at 1.2451.

A sharp break of the 1.2451 support will be a sign of a trend reversal, as then the 200 EMA and the 21 SMA will give bearish strength with targets up to 1.2329 (5/8) key support.

The key point to watch is the 1.2500 level. Above it we expect an upward movement and we can buy on the technical rebound, below we expect a consolidation to sell with targets at 1.2329 in the short term.

Support and Resistance Levels for August 11 - 12, 2021

Resistance (3) 1.2636

Resistance (2) 1.2604

Resistance (1) 1.2564

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Support (1) 1.2492

Support (2) 1.2468

Support (3) 1.2420

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Trading tip for USD/CAD for August 11 - 12, 2021

Buy in case of a rebound at EMA 200 that is 1.2510, with take profit at 1.2573 (7/8) and 1.2695 (8/8), and stop loss below 1.2470.

Sell below EMA 200 at 1.2500, with take profit at 1.2451(6/8) and stop loss above 1.2537.

The material has been provided by InstaForex Company - www.instaforex.com

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