Current trend

On Friday, USD strengthened against CAD due to the growth of Nonfarm Payrolls data by 201 thousand, which was higher than the forecast of 191 thousand. The published report dispelled almost all doubts about the rate increase this month. August US average hourly earnings increased by 0.4% MoM and by 2.9% YoY, supporting USD.

Cad is under pressure of August’s growth of unemployment to 6.0% against the forecast of 5.9% and the decrease of employment by 51.6K against the forecast of an increase by 5.0K.

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 positive area, preserving the signal to open long positions.

Resistance levels: 1.3207, 1.3225, 1.3286, 1.3382.

Support levels: 1.3158, 1.3127, 1.3102, 1.3043, 1.3006, 1.2935, 1.2886.

Trading tips

Long positions can be opened from the current level with the target at 1.3225 and stop loss 1.3130.

Short positions can be opened from the level of 1.3120 with the target at 1.3050 and stop loss 1.3158.

Implementation period: 1–3 days.

US Dollar vs Canadian

BuySellSpread
1.317061.3166739

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point1.3169
Take Profit1.3225
Stop Loss1.3130
Support levels1.2886, 1.2935, 1.3006, 1.3043, 1.3102, 1.3127, 1.3158, 1.3207, 1.3225, 1.3286, 1.3382

Alternative scenario

RecommendationsSELL STOP
Entry Point1.3120
Take Profit1.3050
Stop Loss1.3158
Support levels1.2886, 1.2935, 1.3006, 1.3043, 1.3102, 1.3127, 1.3158, 1.3207, 1.3225, 1.3286, 1.3382
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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