Current trend

Yesterday, USD weakened against the main competitors, including CAD. Monday’s key event was the signing of an agreement between the US and Mexico. Investors took it as a positive step on the way to removing the current political uncertainty, which had forced to abandon the risky assets and invest in the dollar. The agreement gives the market hope for a conciliatory outcome in the US negotiations with other countries, in particular, with China.

There is a lack of key macroeconomic releases today, so the main impact on the pair can be provided by political decisions and statements. On Wednesday, Q2 annual US GDP data and Canadian Current Account will be published, the market predicts high volatility.

Support and resistance

On the 4-hour chart, the instrument was corrected to the bottom line of Bollinger bands, the price range expanded, indicating a possible continuation of the downtrend. MACD histogram is in the negative area, keeping the signal to the opening of short positions.

Resistance levels: 1.2985, 1.3005, 1.3027, 1.3050, 1.3068, 1.3087, 1.3103, 1.3120.

Support levels: 1.2953, 1.2928, 1.2900.

Trading tips

Short positions can be opened from the current level with the target at 1.2900. Stop loss is 1.2985.

Long positions can be opened from the level of 1.3050 with the target at 1.3120 and stop loss 1.3020.

Implementation period: 1–3 days.

US Dollar vs Canadian

BuySellSpread
1.294051.293825

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.2950
Take Profit1.2900
Stop Loss1.2985
Support levels1.2953, 1.2928, 1.2900, 1.2985, 1.3005, 1.3027, 1.3050, 1.3068, 1.3087, 1.3103, 1.3120

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3050
Take Profit1.3120
Stop Loss1.3020
Support levels1.2953, 1.2928, 1.2900, 1.2985, 1.3005, 1.3027, 1.3050, 1.3068, 1.3087, 1.3103, 1.3120
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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