2016-08-08 11:11:39

Technical data of the currency pair:

Previous closing: 1.3175; Daily range: 1.3163-1.3190;
Opening: 1.3180; 52-week range: 1.2458-1.4692;
Annual revenue: +0.42%; Change in % for the previous day: +1.16.

Analytical review:

  • ​Last week the currency pair’s support and resistance levels were 1.3025 и 1.3145. During trading session last Friday the currency maintained support level of 1.3025, and the CAD fell by 1%. The currency pair was under pressure from the American and Canadian statistics;
  • According to the US Labor Department, nonfarm payroll was 255000 in July against the forecast of 180000. Unemployment rate was at the previous level of 4.9%, which was above the forecast of 4.8%;
  • Canadian statistics showed that the change to the employment rate amounted to -31200 in July against the previous level of -700 and the forecast of 10000;
  • “Commitments of Traders” shows decline in long positions by 2408, to 42309. 23072 contracts have been made for short positions;
  • This week, American core index of retail sales and producer price index will be released on Friday.

Summary:

  • ​Positive data on the US labor market and poor Canadian statistics put pressure on the pair USD/CAD. According to “СОТ” large investors prefer long positions.
  • It is expected that the CAD will decline against the USD. It is advisable to open long positions.

Trading tips for the currency pair USD/CAD

Key levels:
Support levels: 1.3145, 1.3085 and 1.3025.
Resistance levels: 1.3185 and 1.3240.

Medium-term trading, Н1
Currently, the currency is traded in the demand zone of 1.3145-1.3165. If the price maintains this zone and in case of the respective confirmation (such as Price Action pattern), it is recommended to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 1.3205, 1.3240 and 1.3290 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 1.3155-1.3180. 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