2016-07-14 11:17:24

Technical data of the currency pair:

Previous closing: 1.2976; Daily range: 1.2906-1.2987;
Opening: 1.2976; 52- week range: 1.2458-1.4692;
Annual revenue: +1.90%; Change in % for the previous day: -0.51.

Analytical review:

  • Over the past few trading sessions the CAD has significantly grown against the USD (over 150 points). Currently, resistance level of the currency pair is 1.2990;
  • As expected, yesterday, the Bank of Canada left interest rate unchanged at the level of 0.5%. The regulator has upgraded economic growth forecast of the country for this year;
  • 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%;
  • “Commitments of Traders” shows that the number of long positions has dropped by 1855 contracts, to 50326. 71472 contracts have been made for short positions.
  • Technical analysis shows possibility of the rise in the CAD. On the chart with timeframe H1 a reversal pattern “head and shoulder has been formed.

Summary:

  • Optimistic forecast for the economic growth in Canada, stability of the monetary policy of the Canadian Central Bank and the rise in oil prices support the demand for the CAD. “COT” shows minor decline in long positions.
  • Therefore, in the near future the CAD can go up against the USD. It is recommended to open short positions.

Trading tips for the currency pair USD/CAD

Key levels:
Support levels: 1.2920, 1.2875 and 1.2835.
Resistance levels: 1.2990 and 1.3035.

Medium-term trading, H1
Currently, the currency is traded at support level of 1.2920. After breaking out and testing of this level and in case of the respective confirmation (such as Price Action pattern), it is recommended 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 1.2880, 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 resistance zone of 1.2935-1.2955. 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 at the level of 1.2960. Take profit can be placed in parts at the levels of 1.2880, 1.2850 and 1.2820 with the use of trailing stops.

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