2016-07-28 11:54:42

Technical data of the currency pair:

Previous closing: 1.3187;
Daily range: 1.3123-1.3190;
Opening: 1.3187;
52-week range: 1.2458-1.4692;
Annual revenue: +1.69%;
Change in % for the previous day: +0.01.

Analytical review:

  • Since mid-July the CAD has dropped by over 350 points against the USD. During yesterday’s trading session the rally in the USD stopped at the resistance level of 1.3240;
  • As expected yesterday the US Fed left interest rate at the level of 0.25%-0.50%. The Regulator said that short-term risks to the economic growth in the USA have lowered. However, US Central Bank may postpone the process of monetary policy tightening until inflation reaches target level of 2%;
  • U.S. Department of Commerce reported the decline in the orders for durable goods in June by 0.5% against the forecast of 0.3%;
  • “Commitments of Traders” shows the decrease in long positions by 449 contracts, to 48982. 78398 contracts have been concluded for short positions;
  • Technical analysis shows possibility of the correction in the pair USD/CAD. On the chart with the timeframe Н1 a strong reversal pattern “Triple top” has been formed.

Summary:

  • Uncertainty about future monetary policy of the US Fed and poor American statistics support the demand for the Canadian currency. Technical analysis shows possibility of the correction in the pair. “COT” demonstrates minor decrease in number of long positions;
  • It is expected that the CAD will rise against the USD. It is advisable to open short positions.

Trading tips for the currency pair USD/CAD

Key levels:
Support levels: 1.3125, 1.3075 and 1.3025.
Resistance levels: 1.3185 and 1.3240.

Medium-term trading, Н1
Currently, the currency is traded at support level of 1.3125. 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 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 1.3115-1.3145. 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