Current trend

The pair continues to move in the side channel.

On Tuesday, the Canadian dollar was supported by GDP growth by 0.4% in February: the indicator, which shows the overall state of the Canadian economy, exceeded the forecast by 0.1%. The Manufacturing PMI in Canada went below the forecast, reaching 55.5 points. Nevertheless, this result indicates a positive dynamics of the sector's development, favorably reflecting on the CAD rate.

The US dollar gained support against the background of the growth of ISM Prices Paid index: the indicator assessing the state of the manufacturing sector in the US exceeded the forecast, reaching 79.3 points.

The main event of today is the decision of the Fed on the interest rate and subsequent comments of the regulator on monetary policy. The market is expected to be highly volatile.

Support and resistance

On H4 chart, the instrument is moving horizontally in the corridor formed by the boundaries of Bollinger Bands. MACD histogram is near the zero mark, and its volume is minimal.

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

Resistance levels: 1.2850, 1.2880, 1.2900, 1.2930, 1.2950.

Trading tips

Sell positions could be opened from the level of 1.2800 with target at 1.2750. Stop-loss – 1.2830.

Long positions may be opened from the level of 1.2850 with target at 1.2900 and stop-loss at 1.2820. Implementation period: 1-3 days.

US Dollar vs Canadian

BuySellSpread
1.292161.2919125

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point1.2800
Take Profit1.2750
Stop Loss1.2830
Support levels1.2600, 1.2685, 1.2750, 1.2800, 1.2820, 1.2850, 1.2880, 1.2900, 1.2930, 1.2950

Alternative scenario

RecommendationsBUY STOP
Entry Point1.2850
Take Profit1.2900
Stop Loss1.2820
Support levels1.2600, 1.2685, 1.2750, 1.2800, 1.2820, 1.2850, 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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