Current trend

On Monday, the US dollar strengthened against the Canadian one in view of rising yield of US government bonds by almost 3%.

USD was also supported by an increase in the Markit index of business activity in the services sector, PMI Markit index in the manufacturing sector, as well as increased sales in the secondary housing market in the United States. A deterrent for the pair is the rise in oil prices, which consolidate around the four-month highs.

Today, investors should pay attention to the release of data on sales of new houses in the US (16:00 GMT+2), moderate volatility is expected.

 Support and resistance

On H4 chart there is a correction of the upward movement, the instrument has slowed growth and is trading near the upper border of Bollinger Bands. MACD histogram is in the positive zone and keeps a strong buy signal.

Support levels: 1.2820, 1.2800, 1.2750, 1.2685, 1.2600.

Resistance levels: 1.2845, 1.2880, 1.2900, 1.2930, 1.2950.

Trading tips

Buy orders may be opened from the level of 1.2850 with the target at 1.2900 and stop-loss at 1.2820.

Short positions may be opened from the level of 1.2800 with the target at 1.2750 and stop-loss at 1.2830.

Implementation time: 1-3 days.

US Dollar vs Canadian

BuySellSpread
1.331031.3307825

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point1.2850
Take Profit1.2900
Stop Loss1.2820
Support levels1.2600, 1.2685, 1.2750, 1.2800, 1.2820, 1.2845, 1.2880, 1.2900, 1.2930, 1.2950

Alternative scenario

RecommendationsSELL STOP
Entry Point1.2800
Take Profit1.2750
Stop Loss1.2830
Support levels1.2600, 1.2685, 1.2750, 1.2800, 1.2820, 1.2845, 1.2880, 1.2900, 1.2930, 1.2950
USD/CAD: general review

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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