Current trend

On Thursday, the pair strengthened steadily and grew by more than a hundred points due to the strong dollar. USD was supported by strong May US Sales Data supported USD. It is estimated that sales increased from 0.4% to 0.8%, and Retail Sales increased from 0.4% to 0.9%. Initial Jobless Claims indicator was also positive. It was below the forecasts, which indicates the strength of the employment market and affects the national currency positively.

On Friday, investors are waiting for the publication of the May US Industrial Production, which can fall from 0.7% to 0.2% and affect USD negatively.

Support and resistance

On the 4-hour chart, the instrument grows along the upper border of Bollinger bands, the price range is widened. MACD histogram is in the positive area, keeping a strong signal for the opening of long positions.

Resistance levels: 1.3160, 1.3200.

Support levels: 1.3130, 1.3100, 1.3080, 1.3050, 1.3025.

Trading tips

Long positions can be opened from the current level with the target at 1.3200 and stop loss 1.3110.

Short positions can be opened at the level 1.3100 with the target at 1.3025 and stop loss 1.3130.

Implementation period: 1–3 days.

US Dollar vs Canadian

BuySellSpread
1.292351.292125

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point1.3136
Take Profit1.3200
Stop Loss1.3110
Support levels1.3025, 1.3025, 1.3080, 1.3100, 1.3130, 1.3160, 1.3200

Alternative scenario

RecommendationsSELL STOP
Entry Point1.3100
Take Profit1.3025
Stop Loss1.3130
Support levels1.3025, 1.3025, 1.3080, 1.3100, 1.3130, 1.3160, 1.3200
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.

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