Current trend

Yesterday, CAD strengthened against USD due to the closing of long positions after a general weakening, which was promoted by the recognition of Donald Trump's lawyer Michael Cohen with his fault in violations during the election campaign and subsequent accusations against the president. A decrease in Retail Sales in Canada by 0.2% had almost no effect on the rate, FOMC minutes affects USD negatively in the short term.

Investors are focused on the beginning of two-day trade negotiations between the US and China in Washington and FOMC Minutes release. US-China trade talks will be the first after a series of unsuccessful May consultations. President Trump has already noted that the Chinese authorities cannot offer the US an acceptable agreement. Representatives of the Chinese government, on the contrary, are hoping for a positive result, as stated on Tuesday by the representative of the Ministry of Foreign Affairs of the People's Republic of China, Lu Kang. Market participants believe that these talks can be the first in a series of contacts, the culmination of which will be the meeting of Donald Trump and Xi Jinping, scheduled for November.

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: 1.3047, 1.3087, 1.3100, 1.3173.

Support levels: 1.2986, 1.2960, 1.2928.

Trading tips

Short positions can be opened from the current level with the target at 1.2960 and stop loss 1.3070.

Long positions can be opened from the level of 1.3100 with the target at 1.3170 and stop loss 1.3070.

Implementation period: 1–3 days.

US Dollar vs Canadian

BuySellSpread
1.293831.2935825

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.3043
Take Profit1.2960
Stop Loss1.3070
Support levels1.2928, 1.2960, 1.2986, 1.3047, 1.3087, 1.3100, 1.3173

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3100
Take Profit1.3170
Stop Loss1.3070
Support levels1.2928, 1.2960, 1.2986, 1.3047, 1.3087, 1.3100, 1.3173
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.

Start Trading
Follow us in social networks!
Live Chat
Leave feedback