Current trend

USD strengthened against CAD after the decision of the Bank of Canada to keep the interest rate on the level of 1.25%. The mood of the speech of the head of the regulator Stephen Poloz was restricted. Based on the fundamental factors, he refused from estimating the market only positively. The growth of the pair was restricted by the increase in oil prices, which renewed the 4-years highs against the decrease in US oil resources.

Today the market is waiting for US employment market data release at 14:30 (GMT+2). Initial Jobless Claims indicator is expected to decrease from 233K to 230K, which can support USD.

Support and resistance

On the 4-hour chart, the downward movement is in the correction, the instrument is trading within the middle line and the lower border of Bollinger Bands. MACD histogram is in the negative zone, keeping sell signal.

Resistance levels: 1.2685, 1.2750, 1.2790, 1.2820, 1.2845, 1.2880, 1.2900, 1.2930, 1.2950.

Support levels: 1.2600, 1.2550, 1.2525, 1.2490, 1.2450.

Trading tips

Short positions can be opened at the level of 1.2600 with the target at 1.2525. Stop loss is 1.2640.

Long positions can be opened from the level of 1.2700 with the target at 1.2750 and stop loss 1.2670.

Implementation period: 1–3 days.

US Dollar vs Canadian

BuySellSpread
1.293451.2931926

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point1.2600
Take Profit1.2525
Stop Loss1.2640
Support levels1.2450, 1.2490, 1.2525,1.2550, 1.2600, 1.2685, 1.2750, 1.2790, 1.2820, 1.2845, 1.2880, 1.2900, 1.2930, 1.2950

Alternative scenario

RecommendationsBUY STOP
Entry Point1.2700
Take Profit1.2750
Stop Loss1.2670
Support levels1.2450, 1.2490, 1.2525,1.2550, 1.2600, 1.2685, 1.2750, 1.2790, 1.2820, 1.2845, 1.2880, 1.2900, 1.2930, 1.2950
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.

Start Trading
Follow us in social networks!
Live Chat
Leave feedback