Current trend

Last week, the pair showed a slight decrease in view of positive macroeconomic releases from Canada.

Yesterday, the instrument strengthened moderately, despite the publication of weak data on the US housing market. Market participants continue holding long positions, counting on the breakout of the psychological level of 1.3200 this week. However, the arguments in favor of CAD strengthening are very weighty. The increase in Iran-US tension pushes up oil prices. In addition, oil was supported by a Saudi Arabia statement that it did not want to increase the volume of supplies to the market.

Today at 15:45 (GMT+2) July indicators of business activity in the United States will be published. US services sector is the most stable, so the dynamics of the pair is more dependent on activity in the manufacturing sector. At 22:30 (GMT+2) API will publish a weekly release on oil reserves. The last report recorded an increase by 0.629 million barrels, and this trend may continue.

Support and resistance

On H4 chart, the instrument was unable to consolidate above the Bollinger average and started to decline. The indicator reversed down, and the price range remains unchanged, reflecting the continuation of the downward trend. MACD histogram is in the negative zone keeping a weak sell signal. Stochastic has reached the overbought area having formed a strong sell signal.

Support levels: 1.3010, 1.3053, 1.3085, 1.3125, 1.3165.

Resistance levels: 1.3200, 1.3226, 1.3260, 1.3293, 1.3333.

Trading tips

Short positions may be opened from the current level with targets at 1.3125, 1.3100 and stop loss at 1.3180. Implementation time: 1-2 days.

Long positions may be opened from the level of 1.3217 with the target at 1.3295 and stop loss at 1.3185. Implementation time: 1-3 days.

US Dollar vs Canadian

BuySellSpread
1.339061.33786120

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.3154
Take Profit1.3125, 1.3100
Stop Loss1.3180
Support levels1.3010, 1.3053, 1.3085, 1.3125, 1.3165, 1.3200, 1.3226, 1.3260, 1.3293, 1.3333

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3220
Take Profit1.3295
Stop Loss1.3185
Support levels1.3010, 1.3053, 1.3085, 1.3125, 1.3165, 1.3200, 1.3226, 1.3260, 1.3293, 1.3333
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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