Current trend

The Canadian dollar was the only commodity currency, which strengthened on Tuesday against the US dollar. In the absence of important macroeconomic releases, the strengthening of CAD was due to rising oil prices. Support for the Canadian currency is also provided by expectations of rates increase by the Bank of Canada this year. On the other hand, the Canadian currency, like many others, is still affected by the economic crisis in Turkey. Sharp fluctuations in oil prices do not add to the instrument’s stability.

Today, traders should pay attention to the release of data from the US on retail sales (14:30 GMT+2), and on industrial production (15:15 GMT+2). High volatility is expected on the market.

Support and resistance

On the 4-hour chart, the instrument returns to growth, the pair is traded between the middle and bottom lines of the indicator "Bollinger bands", the price range is narrowing. The MACD histogram is in the positive area, keeping a weak signal to buy.

Support levels: 1.3049, 1.3034, 1.2998, 1.2973, 1.2960.

Resistance levels: 1.3080, 1.3101, 1.3121, 1.3171, 1.3190.

Trading tips

Long positions can be opened at the level of 1.3121 with a target of 1.3171. Stop loss – 1.3090.

Short positions should be opened at the level of 1.3030 with a target of 1.2980 and a stop loss at 1.3060.

Implementation period: 1-3 days.

US Dollar vs Canadian

BuySellSpread
1.315651.3154223

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point1.3121
Take Profit1.3171
Stop Loss1.3090
Support levels1.2960, 1.2973, 1.2998, 1.3034, 1.3049, 1.3080, 1.3101, 1.3121, 1.3171, 1.3190

Alternative scenario

RecommendationsSELL STOP
Entry Point1.3030
Take Profit1.2980
Stop Loss1.3060
Support levels1.2960, 1.2973, 1.2998, 1.3034, 1.3049, 1.3080, 1.3101, 1.3121, 1.3171, 1.3190
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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