2016-06-28 12:41:20

Technical data of the currency pair:

Previous closing: 1.3071; Daily range: 1.2990-1.3087;
Opening: 1.3071; 52- week range: 1.2124-1.4692;
Annual revenue: +5.03%; Change in % for the previous day: +0.31;

Analytical review:

  • Over the past few trading sessions the CAD significantly fell against the USD(over 350 points). Currently, resistance level of the currency pair is 1.3085;
  • Unexpected decisions of the UK to leave the EU caused high volatility in the financial markets. The USD significantly rose against major currencies. At the moment market may experience correction;
  • The CAD is a commodity currency. Demand for the CAD is supported by the rise in oil prices. During the Asian session the price of crude oil WTI rose by over 1.5%;
  • “Commitments of Traders” shows ambiguous picture. Large investors have reduced the number of long positions by 31159 contracts. Short positions have been also reduced by 57846 contracts;
  • The news of this week will include: US GDP (today), Canadian GDP (Thursday). This data can affect movement direction in the pair and volatility in the market.

Summary:

  • Recent Brexit, uncertainty about the future monetary policies of the major Central Banks and increased volatility in the financial markets add pressure on the currency. Demand for the currency is supported by the rise in oil prices. According to “COT” large investors do not have general opinion about the CAD.
  • In the near future the CAD is likely to rise against the USD. It is advisable to open short positions.

Trading tips for the currency pair USD/CAD

Key levels:
Support levels: 1.2995, 1.2920 and 1.2835.
Resistance levels: 1.3085 and 1.3120.

Medium-term trading, H1
Currently, the currency is traded at support level of 1.2995. After breaking out and testing of this level and in case of the respective confirmation (such as Price Action pattern), we recommend to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.2925, 1.2840 and 1.2775 with the use of trailing stops.

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, М15
Currently, the currency is traded near demand zone of 1.2995-1.3025. If the price maintains this zone, we recommend to open short positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.2940, 1.2900 and 1.2860 with the use of trailing stops.

Short-term trading, М15
Short-term trading, М15