Current trend

USD strengthened against CAD at the trading on Thursday. The USD was supported by positive for the US economy data on the labor sector.

The number of initial jobless claims decreased, reaching 210K, which was 2K lower than the forecast. Continuing jobless claims amounted to 1.640M, which also was better than the forecast.

The key event of the day for the pair will be the publication of data on retail sales in Canada (14:30 GMT+2), as well as the publication of Core Consumer Price Index by the Bank of Canada (14:30 GMT+2). The market is expected to be highly volatile.

Support and resistance

On the H4 chart there is a correction of the upward movement, the pair is trading in the area of the upper line of Bollinger Bands. The price range is widened, indicating possible resumption of the uptrend. MACD histogram is in the positive area, the signal line is crossing the zero level and the histogram body from below, signaling for the opening of long positions.

Resistance levels: 1.3070, 1.3090, 1.3150.

Support levels: 1.3050, 1.3030, 1.3005, 1.2985, 1.2950, 1.2925.

Trading tips

Buy positions could be opened from the level of 1.3100 with target at 1.3150. Stop loss — 1.3070.

Short positions may be opened from the level of 1.3030 with target at 1.2985 and stop loss at 1.3060.

Implementation time: 1-3 days.

US Dollar vs Canadian

BuySellSpread
1.315481.31428120

Scenario

TimeframeDay's Range
RecommendationsBUY STOP
Entry Point1.3100
Take Profit1.3150
Stop Loss1.3070
Support levels1.2925, 1.2950, 1.2985, 1.3005, 1.3030, 1.3050, 1.3070, 1.3090, 1.3150

Alternative scenario

RecommendationsSELL STOP
Entry Point1.3030
Take Profit1.2985
Stop Loss1.3060
Support levels1.2925, 1.2950, 1.2985, 1.3005, 1.3030, 1.3050, 1.3070, 1.3090, 1.3150
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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