Current trend

On Wednesday, the pair lost about 90 points.

The US dollar fell amid a slowdown in the growth in the Producer Price Index ex Food & Energy: the indicator showed an increase of 2.3%YoY (against the forecast of 2.7%). Investors continue to monitor the negotiations between the United States and Canada on the trade agreement, but it may take a long time before the deal is concluded.

Today, investors will focus on the publication of the US Consumer Price Index Ex Food & Energy (14:30 GMT+2), as well as data on the change in the number of Jobless Claims (14:30 GMT+2).  Also, traders should pay attention to the publication of the Canadian New Housing Price Index (14:30 GMT+2). The market is expected to be highly volatile.

Support and resistance

On the H4 chart, there is a downward correction, the instrument is traded near the lower border of Bollinger Bands, the price range is expanded, which indicates a possible continuation of the downward movement. MACD histogram is in the negative zone, the signal line is crossing the zero line and the body of the histogram from above, forming a sell signal.

Support levels: 1.3000, 1.2980, 1.2935, 1.2900, 1.2885.

Resistance levels: 1.3042, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225.

Trading tips

Sell orders may be opened from the current level with the target at 1.2900 and stop loss at 1.3040. Implementation time: 1-3 days.

Long positions may be opened from the level of 1.3100 with the target at 1.316 and stop loss at 1.3170. Implementation time: 3-5 days.

US Dollar vs Canadian



TimeframeDay's Range
Entry Point1.3010
Take Profit1.2900
Stop Loss1.3040
Support levels1.2885, 1.2900, 1.2935, 1.2980, .3000, 1.3042, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3100
Take Profit1.3160
Stop Loss1.3070
Support levels1.2885, 1.2900, 1.2935, 1.2980, .3000, 1.3042, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225
USD/CAD: general review

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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