Current trend

Yesterday, USD declined against CAD amid slowing growth in retail sales in the US, which is the main indicator of consumer spending.

Growth in retail sales in September was 0.1%, which was below the forecast of 0.5%. Core Retail Sales declined by 0.1%, while economists had expected growth by 0.4%.

On Monday, investors were focused on the comments of US President Donald Trump and his economic adviser Larry Kudlow. In an interview with CBS, Trump accused China of interfering in the American election process and did not exclude the introduction of new higher tariffs on Chinese goods if China does not open its markets and does not conclude a fair agreement with the US.

Today, investors should pay attention to the release of data on US Industrial Production, as well as on Capacity Utilization Rate (15:15 GMT+2). The market is expected to be moderately volatile.

Support and resistance

On the H4 chart, the pair is trading near the bottom line of Bollinger Bands, the price range is narrowed. MACD histogram is near the zero level, and the signal line is directed downwards.

Resistance levels: 1.3005, 1.3030, 1.3050, 1.3070, 1.3090.

Support levels: 1.2985, 1.2950, 1.2925, 1.2890, 1.2855.

Trading tips

Sell positions could be opened from the level of 1.2950 with target at 1.2890. Stop loss — 1.2985.

Long positions may be opened from the level of 1.3030 with target at 1.3070 and stop loss at 1.3005.

Implementation period: 1-3 days.

US Dollar vs Canadian

BuySellSpread
1.329041.328824

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point1.2950
Take Profit1.2890
Stop Loss1.2985
Support levels1.2855, 1.2890, 1.2925, 1.2950, 1.2985, 1.3005, 1.3030, 1.3050, 1.3070, 1.3090

Alternative scenario

RecommendationsBUY STOP
Entry Point1.3030
Take Profit1.3070
Stop Loss1.3005
Support levels1.2855, 1.2890, 1.2925, 1.2950, 1.2985, 1.3005, 1.3030, 1.3050, 1.3070, 1.3090
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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