Current trend

This week, the USD/CAD pair is falling due to the negative US ISM Prices Paid release.

Inflation slowing makes the market doubt in Fed's "hawkish" plans for a quarterly tightening of monetary policy. The entry into force of the US and Chinese trade duties on each other's goods, which is also expected on Friday, can cause more concern. Last Friday, CAD was supported by Canadian April GDP release, reflecting an unexpected increase by 0.1%.

Today and tomorrow, the pair is not expected to move significantly due to the celebration of Independence Day in the US, so the instrument will be trading with a slight "bearish" decline in the next two days. On Thursday, it is necessary to pay attention to US employment market releases at 14:30 (GMT+2) and FOMC Minutes publication at 20:00 (GMT+2).

Support and resistance

On the 4-hour chart, the instrument is testing the support level of 1.3160. Bollinger bands are directed downwards, the price range has slightly narrowed, reflecting the development of the downward trend. MACD histogram is in the negative zone, holding the sell signal. Stochastic is ready to enter the oversold area.

Resistance levels: 1.3214, 1.3256, 1.3291, 1.3331, 1.3390.

Support levels: 1.3160, 1.3127, 1.3098, 1.3053, 1.2996.

Trading tips

Short positions can be opened from the current level with the targets at 1.3100, 1.3050 and stop loss 1.3185. Implementation period: 1–2 days.

Long positions can be opened above the level of 1.3220 with the target at 1.3310 and stop loss 1.3170. Implementation period: 1–3 days.

US Dollar vs Canadian

BuySellSpread
1.330511.3302625

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.3146
Take Profit1.3100, 1.3050
Stop Loss1.3185
Support levels1.2996, 1.3053, 1.3098, 1.3127, 1.3160, 1.3214, 1.3256, 1.3291, 1.3331, 1.3390

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3225
Take Profit1.3310
Stop Loss1.3170
Support levels1.2996, 1.3053, 1.3098, 1.3127, 1.3160, 1.3214, 1.3256, 1.3291, 1.3331, 1.3390
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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