2012-07-11 14:53:00
1. Current trend of the currency pair USD/CAD
The USD/CAD rate has maintained ascending trend since the beginning of the month. Previous slump in the Canadian dollar was caused by the decline in oil prices and the negative data on employment. Unemployment rate in the country was above experts’ expectations and amounted to 7.2% in June. On Tuesday, the USD/CAD rate reached the highs of the month, at the level of 1.0229; trying to break through this level the pair encountered significant resistance, and after the failure, it rolled back to 1.0212, which represents the level of current trading.
2. Important levels (Support and Resistance)
Initial support level is still at 1.0231; support level is at 1.0209. On Wednesday, investors are waiting for the data release on the Canadian imports, exports and foreign trade balance for May. The most feasible scenario: the CAD price will break through the level of 1.0231 and rush to the target level of 1.0251. If this level is broken down, it will go to 1.0273. It is unlikely, that economic statistics will be positive and help the Canadian dollar to strengthen. However, in such case, the price will break through the level 1.0209 and will try to reach the lowest prices of the month at the level of 1.0120.
3. Best entry/exit points
In case of the first scenario, it is advised to enter the market at the level of 1.0236, with protective stop orders at the level of 1.0211. If the Canadian dollar strengthens, and the price breaks through the level of 1.0209, the position can be opened at the level of 1.0204, with protective order at 1.0233.
4. Supporting facts
Presently, the Canadian dollar is under pressure from the negative Chinese news. Domestic demand in the country considerably reduced in June, which was driven by significant decline in the volume imports from China. Reduction in the volume of import will definitely have an impact on the CAD rate, as China is the second largest trade partner of Canada after the US. Stock market cannot support the CAD either. Canadian stock market index S&P/TSX 60 has been declining for the second week in a row, as the most of the stock indexes. On the other hand, Oil price provides some support to the CAD, as since early morning, it is making attempts to regain from yesterday’s fall.
The USD/CAD rate has maintained ascending trend since the beginning of the month. Previous slump in the Canadian dollar was caused by the decline in oil prices and the negative data on employment. Unemployment rate in the country was above experts’ expectations and amounted to 7.2% in June. On Tuesday, the USD/CAD rate reached the highs of the month, at the level of 1.0229; trying to break through this level the pair encountered significant resistance, and after the failure, it rolled back to 1.0212, which represents the level of current trading.
2. Important levels (Support and Resistance)
Initial support level is still at 1.0231; support level is at 1.0209. On Wednesday, investors are waiting for the data release on the Canadian imports, exports and foreign trade balance for May. The most feasible scenario: the CAD price will break through the level of 1.0231 and rush to the target level of 1.0251. If this level is broken down, it will go to 1.0273. It is unlikely, that economic statistics will be positive and help the Canadian dollar to strengthen. However, in such case, the price will break through the level 1.0209 and will try to reach the lowest prices of the month at the level of 1.0120.
3. Best entry/exit points
In case of the first scenario, it is advised to enter the market at the level of 1.0236, with protective stop orders at the level of 1.0211. If the Canadian dollar strengthens, and the price breaks through the level of 1.0209, the position can be opened at the level of 1.0204, with protective order at 1.0233.
4. Supporting facts
Presently, the Canadian dollar is under pressure from the negative Chinese news. Domestic demand in the country considerably reduced in June, which was driven by significant decline in the volume imports from China. Reduction in the volume of import will definitely have an impact on the CAD rate, as China is the second largest trade partner of Canada after the US. Stock market cannot support the CAD either. Canadian stock market index S&P/TSX 60 has been declining for the second week in a row, as the most of the stock indexes. On the other hand, Oil price provides some support to the CAD, as since early morning, it is making attempts to regain from yesterday’s fall.
