Current trend

Yesterday, CAD strengthened against USD after the decision of the Bank of Canada to raise the interest rate to 1.75%.

In the accompanying statement, it was noted that in order to achieve inflation targets, the Board of Governors considered it necessary to increase the interest rate to a neutral value. The regulator will continue to take into account how the economy adjusts to new rates, given the high level of household debt. In order to forecast inflation, special attention will be paid to the events of global trade policy and their consequences.

The pair was under pressure of the decline of New Home Sales in the United States, which indicates a reduction in stimulation of related industries, services, and the labor market. However, USD was supported by the growth of the Markit Service PMI: the figure reached the level of 54.7 points, surpassing the forecast of 54.0.

Today, traders should pay attention to US Durable Goods Orders release at 14:30 (GMT+2), as well as data on US Pending Home Sales at 16:00 (GMT+2). The market expects moderate volatility.

Support and resistance

Resistance levels: 1.3030, 1.3050, 1.3070, 1.3090, 1.3105, 1.3130.

Support levels: 1.3005, 1.2970, 1.2950, ​​1.2915.

Trading tips

Long positions can be opened from the current level with the target at 1.3090 and stop loss 1.3000.

Short positions can be opened from the level of 1.2970 with the target at 1.2915 and stop loss 1.3000.

Implementation period: 1–3 days.

US Dollar vs Canadian

BuySellSpread
1.316081.3158424

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point1.3026
Take Profit1.3090
Stop Loss1.3000
Support levels1.2915, 1.2950, 1.2970, 1.3005, 1.3030, 1.3050, 1.3070, 1.3090, 1.3105, 1.3130

Alternative scenario

RecommendationsSELL STOP
Entry Point1.2970
Take Profit1.2915
Stop Loss1.3000
Support levels1.2915, 1.2950, 1.2970, 1.3005, 1.3030, 1.3050, 1.3070, 1.3090, 1.3105, 1.3130
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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