Technical analysis of the currency pair USD/CAD on 03/11/2016. The daily chart
General analysis.
Yesterday's trading day has passed without major changes for the pair USD/CAD and daily candle closed as a "doji" with a long upper and lower shadows. The last two weeks have been for the US dollar with increases and the price has reached the upper border of the price channel around 1.3535.
At the moment, we see progressive downwards movement after a rebound from this level of resistance and all previously open long positions should be closed today at the market price in case you have not done it earlier.
Schedule of Stochastic indicator shows us a trend reversal moment and the beginning of decline. Overbought signal line has been crossed from top to bottom, and continues to decline.
Next few days
Given the price rebound from the upper border of the price channel as well as the formation of the candlestick patterns "Doji" and "hanging man" we can predict the potential beginning of a downtrend and a possible reduction in the framework of the price channel.
Confirmation comes from Stochastic indicator with a clear signal to sell.
Transactions can be opened now with placing orders S/L at 20-30 pips above the upper boundary of the channel at 1.3500
