Current trend

Last week, the pair grew in view of the strengthening of the US dollar and the decline in oil prices. With the opening of the new trading session, growth continued: the instrument is near the resistance level of 1.3000.

The US currency showed strength last week, despite the restrained tone of the published minutes of the FOMC. The regulator did not say anything new about plans to raise interest rates this year and did not specify dates of future increases.

In the absence of important macroeconomic releases from Canada, the main impact on CAD were oil prices, which fell against the backdrop of growing geopolitical tensions between the US and North Korea, thus weakening the Canadian dollar. 

The beginning of the week promises to be quiet because of holidays in Canada and the US. The second half of the week is expected to be more volatile, as is usually does at the end of the month, as well as the release of a number of important economic data.

 Support and resistance

On H4 chart, the pair is growing along the upper border of Bollinger Bands. MACD histogram is in the positive area keeping a strong signal for the opening of long positions.

Support levels: 1.2970, 1.2950, 1.2525, 1.2930, 1.2910, 1.2880, 1.2820.

Resistance levels: 1.3000, 1.3050, 1.3080, 1.3100, 1.3130, 1.3160.

Trading tips

Buy orders may be opened from the current level with the target at 1.3050 and stop-loss at 1.2950.

Short positions may be opened from the level of 1.2900 with the target at 1.2850 and stop-loss at 1.2930.

Implementation time: 1-3 days.

US Dollar vs Canadian

BuySellSpread
1.29181.2915525

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point1.2980
Take Profit1.3050
Stop Loss1.2950
Support levels1.2820, 1.2880, 1.2910, 1.2930, 1.2525, 1.2950, 1.2970, 1.3000, 1.3050, 1.3080, 1.3100, 1.3130, 1.3160

Alternative scenario

RecommendationsSELL STOP
Entry Point1.2900
Take Profit1.2850
Stop Loss1.2930
Support levels1.2820, 1.2880, 1.2910, 1.2930, 1.2525, 1.2950, 1.2970, 1.3000, 1.3050, 1.3080, 1.3100, 1.3130, 1.3160
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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