Current trend

On Friday, USD moved in different directions against CAD due to Q2 US GDP preliminary data release, which grew from 2.2% to 4.1%. Gross Domestic Product Price Index also exceeded forecasts, increasing from 2.0% to 3.2%. Core Personal Consumption Expenditures were worse than expected, rising by 2.0%.

Today, traders should pay attention to US June Pending Home Sales release at 16.00 (GMT+2), the market expects moderate volatility.

Support and resistance

On the 4-hour chart, the instrument was corrected to the midline of Bollinger bands, the price range narrowed. MACD histogram is in the negative area, keeping the signal to the opening of short positions.

Resistance levels: 1.3080, 1.3100, 1.3130, 1.3160, 1.3200.

Support levels: 1.3050, 1.3025, 1.3000.

Trading tips

Short positions can be opened from the level of 1.3025 with the target at 1.2970. Stop loss is 1.3060.

Long positions can be opened from the level of 1.3100 with the target at 1.3160 ​​and stop loss 1.3060.

Implementation period: 1–3 days.

US Dollar vs Canadian

BuySellSpread
1.316361.316126

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point1.3025
Take Profit1.2970
Stop Loss1.3060
Support levels1.3000, 1.3025, 1.3050, 1.3080, 1.3100, 1.3130, 1.3160, 1.3200

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3100
Take Profit1.3160
Stop Loss1.3060
Support levels1.3000, 1.3025, 1.3050, 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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