2016-07-25 11:29:39

Technical data of the currency pair:

Previous closing: 1.3128; Daily range: 1.3124-1.3154;
Opening: 1.3128; 52-week range: 1.2458-1.4692;
Annual revenue: +0.67%; Change in % for the previous day: +0.29.

Analytical review:

  • ​Since mid-July the CAD has dropped by over 250 points against the USD. During trading session last Friday the rally in the USD stopped at the resistance level of 1.3185;
  • Canadian statistics released last week showed that core consumer price index in June was 0.0% against 0.3% a month earlier. However, the index was up to the market expectations;
  • According to Canadian statistics core index of retail sales was at the level of 0.9% in May against the forecast of 0.3%;
  • “Commitments of Traders” shows that large investors have reduced the number of long positions by 449 contracts, to 48982. Short positions have been opened for 78392 contracts;
  • This week, interest rate decisions by the US Fed will be known on Wednesday and Canadian GDO on Friday. This news can change movement direction in the pair and market volatility.

Summary:

  • Ambiguous Canadian macro-economic statistics and decline in oil prices put pressure o the Canadian currency, “COT shows that the number of long positions has slightly dropped.
  • Market movement is mixed at the moment. It is advisable to enter the market from the key support and resistance levels.

Trading tips for the currency pair USD/CAD

Key levels:
Support levels: 1.3130, 1.3075 and 1.3025.
Resistance levels: 1.3185.

Medium-term trading, Н1
Currently, the currency is traded at support level of 1.3130. 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 1.3080, 1.3030 and 1.2990.2880 with the use of trailing stops.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading, М15
Currently, the currency is traded in the range of 1.3125-1.3160. It is recommended to enter the market after breaking out of these levels. Positions can be opened at the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stops.

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