Current trend

Yesterday, USD weakened against CAD under pressure of poor US Retail Sales index, which fell from 1.3% to 0.5%. Foreign portfolio investment in Canadian securities decreased from 9.09 billion to 2.18 billion in May, which was significantly lower than the forecast and affected CAD negatively.

On Tuesday, investors are waiting for Fed's Powell Speech in Committee on Banking, Housing, and Urban Affairs, U.S. Senate. The issue can be the monetary policy against EU-US-China trade relations difficulties. As inflation has reached the target level, and the employment market is stable, the regulator can increase rates. However, trade wars make the future of the American economy uncertain. In these circumstances, the Fed may treat the monetary policy with care.

Support and resistance

On the 4-hour chart, the instrument is trading near the lower border of Bollinger bands, the price range is narrowing. MACD histogram is around the zero line, its volumes are minimal, the signal line is ready to cross the zero line downwards, after which a signal to open short positions will be received.

Resistance levels: 1.3130, 1.3160, 1.3200, 1.3220.

Support levels: 1.3100, 1.3080, 1.3050.

Trading tips

Short positions can be opened from the current level with the target at 1.3050. Stop loss is 1.3160.

Long positions can be opened from the level of 1.3165 with the target at 1.3220 and stop loss 1.3130.

Implementation period: 1–3 days.

US Dollar vs Canadian

BuySellSpread
1.309321.3090824

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.3141
Take Profit1.3050
Stop Loss1.3160
Support levels1.3050, 1.3080, 1.3100, 1.3130, 1.3160, 1.3200, 1.3220

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3165
Take Profit1.3220
Stop Loss1.3130
Support levels1.3050, 1.3080, 1.3100, 1.3130, 1.3160, 1.3200, 1.3220
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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