Current trend

The pair was down at the beginning of the week in view of the weakening of USD due to the tensions in world trade.

After the administration of the Trump imposed 25% of export duties on metals from the EU, Canada, and Mexico, investors are waiting for response measures. Probably, they will follow after the meeting of G7, which will take place in Canada at the end of the week and where, most likely, the last attempt to reach an agreement will be made. USD recovered with the start of the American trading session, despite negative data on production indices - the indicator fell by 0.8% against growth of 1.7% in March, while economists expected a decrease by no more than 0.5%.

On Tuesday, investors are waiting for the publication of the ISM index of business activity in the services sector (16:00 GMT+2). In may, the indicator is expected to increase from 56.8 to 57.5 points.

Support and resistance

On H4 chart the instrument was corrected to the middle line of Bollinger Bands, the price range is narrowing. MACD histogram is near the zero level, and its volume is minimal, the signal line moves horizontally, along the zero mark.

Support levels: 1.2930, 1.2910, 1.2880, 1.2850, 1.2820.

Resistance levels: 1.2950, 1.2970, 1.3000, 1.3050.

Trading tips

Buy orders may be opened from the level of 1.2950 with the target at 1.3030 and stop-loss at 1.2910.

Short positions may be opened from the level of 1.2850 with the target at 1.2800 and stop-loss at 1.2880.

Implementation time: 1-3 days.

US Dollar vs Canadian

BuySellSpread
1.330731.3304726

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point1.2950
Take Profit1.3030
Stop Loss1.2910
Support levels1.2820, 1.2850, 1.2880, 1.2910, 1.2930, 1.2950, 1.2970, 1.3000, 1.3050

Alternative scenario

RecommendationsSELL STOP
Entry Point1.2850
Take Profit1.2800
Stop Loss1.2880
Support levels1.2820, 1.2850, 1.2880, 1.2910, 1.2930, 1.2950, 1.2970, 1.3000, 1.3050
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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