Current trend

Yesterday Canadian dollar strengthened against US one due to poor Consumer Price Index and Initial Jobless Claims releases. It caused the fall of US government bonds yield and increased the negative affection on the currency. CAD was supported by the growth of oil prices by 1% and the increase of Canadian bonds yield.

Today US Retail Sales release is worth traders’ attention at 15:30 (GMT+2): the growth by only 0.4% against 0.8% in the previous month is expected. The traders are also focused on the US Consumer Price Index at 15.30 (GMT+2), the volatility is expected to be high.

Support and resistance

On the hour chart the instrument is trading within Bollinger Bands, the price range is narrowed. MACD histogram is around the zero line, its volumes are minimal.

Resistance levels: 1.2525, 1.2550, 1.2575, 1.2600.

Support levels: 1.2510, 1.2500, 1.2480, 1.2450.

Trading tips

Short positions can be opened at the current level with the target at 1.2450 and stop loss at 1.2550. Implementation period: 1–3 days.

Long positions can be opened at the level of 1.2550 with the target at 1.2600 and stop loss at 1.2515. Implementation period: 3–5 days.

US Dollar vs Canadian

BuySellSpread
1.343171.3426255

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.2515
Take Profit1.2450
Stop Loss1.2550
Support levels1.2450, 1.2480, 1.2500, 1.2510, 1.2525, 1.2550, 1.2575, 1.2600

Alternative scenario

RecommendationsBUY STOP
Entry Point1.2550
Take Profit1.2600
Stop Loss1.2515
Support levels1.2450, 1.2480, 1.2500, 1.2510, 1.2525, 1.2550, 1.2575, 1.2600
USD/CAD: general analysis

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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