2016-08-29 11:43:42

Technical performance:

Prev. closure: 1.3004; Daily range: 1.2990-1.3024;
Opening: 1.2995; 52-week range: 1.2458-1.4692;
Annual profit: -1.45%; Previous day's change (%): +0.63.

Analytical review:

  • USD/CAD formed a vey strong support level of 1.2845 over the past two weeks. It managed to retain this level during Friday's trading session, and the CAD therefore lost over 80 points.
  • Federal Reserve Chair Janet Yellen's press conference took place last week. Yellen reported that the monetary policy might tighten amid positive labour market statistics and stable economic growth.
  • The Canadian dollar belongs to commodity currencies. Lower oil quotes put pressure on the currency. WTI oil lost over 1.5% during the Asian trading session.
  • The Commitments of Traders Report shows that important market operators have increased the number of their long positions by 3911 contracts to 48796 contracts. The number of short positions amounts to 31727 contracts.
  • A news factor is worth attention this week: Canada's GDP statistics (Wednesday) and US non-farm payrolls (Friday).These events may affect market volatility.


  • The eventual upcoming Fed interest rate rise and the slump in oil quotes put pressure on the dynamics of USD/CAD. According to the Commitments of Traders Report, important operators have increased their long positions.
  • So, we expect that the CAD will weaken against the USD in the nearest future. We advise you to search for market entry points to open long positions.

Trading tips for USD/CAD

Key levels:
Support levels: 1.2945, 1.2845
Resistance levels: 1.3025, 1.3120

Medium-term trading, H4
The currency is currently trading near a support level at 1.3025. Once this level is broken and tested and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 1.3070, 1.3115 and 1.3180, with Trailing Stop applied.

Medium-term trading, H4
Medium-term trading, H4

Short-term trading, M15
The currency is trading at 1.2995-1.3020. We advise you to search for market entry points once this zone is broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15