Current trend

CAD is strengthening against USD due to the growth of oil prices. The pair managed to consolidate below the level of 1.3000 after reports of the new US sanctions against Iran implementation. The main factor that influences the further movement of the pair is the NAFTA negotiations: the proximity of the agreement can provide additional support for CAD.

Today, traders should pay attention to the release of Canadian Ivey Purchasing Managers Index (16:00 GMT+2), the market expects moderate volatility.

Support and resistance

On the daily chart, the instrument falls along the lower border of Bollinger bands, the price range expands, reflecting a possible continuation of the downward movement. MACD histogram is in the negative area, keeping the signal to the opening of short positions.

Resistance levels: 1.3000, 1.3030, 1.3050, 1.3080, 1.3100.

Support levels: 1.2970, 1.2950, ​​1.2930, 1.2910.

Trading tips

Short positions can be opened from the current level with the target at 1.2910. Stop loss is 1.3000.

Long positions can be opened from the level of 1.3050 with the target at 1.3100 and stop loss 1.3020.

Implementation period: 1–3 days.

US Dollar vs Canadian

BuySellSpread
1.339061.33786120

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.2969
Take Profit1.2910
Stop Loss1.3000
Support levels1.2910, 1.2930, 1.2950, 1.2970, 1.3000, 1.3030, 1.3050, 1.3080, 1.3100

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3050
Take Profit1.3100
Stop Loss1.3020
Support levels1.2910, 1.2930, 1.2950, 1.2970, 1.3000, 1.3030, 1.3050, 1.3080, 1.3100
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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