Current trend

Last week, the pair strengthened slightly, despite the tightening of monetary policy by the Canadian regulator and mixed statistics from the United States.

Strong pressure on the Canadian currency is formed due to the falling oil prices. According to Baker Hughes, the number of active drilling rigs in the United States for the week increased by 2 units. In addition, on Wednesday, API reported an increase in crude oil reserves of 6.3 million barrels per week.

Today at 14:30 (GMT+2) in the United States data on personal income and expenses will be published. Projected growth rates will provide significant support to the pair. At the same time, negative statistics will exert short-term pressure on the pair, but the overall “bullish” trend will continue.

Support and resistance

On the H4 chart, the pair was corrected to the middle line of the Bollinger Bands. The indicator is directed horizontally, and the price range has slightly expanded, which confirms the upward correction. The MACD histogram keeps the buy signal. Stochastic does not give a signal to open positions.

Support levels: 1.3079, 1.3032, 1.3000, 1.2964, 1.2922, 12845, 1.2782.

Resistance levels: 1.3112, 1.3156, 1.3209.

Trading tips

You can open long positions at the current price with the target at 1.3155 and a stop loss at 1.3055.

Short positions should be opened below 1.3060 with the target at 1.3000 and a stop loss at 1.3080.

Implementation period: 1-2 days.

US Dollar vs Canadian

BuySellSpread
1.316081.3158424

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point1.3095
Take Profit1.3155
Stop Loss1.3055
Support levels1.2782, 1.2845, 1.2922, 1.2964, 1.3000, 1.3032, 1.3079, 1.3112, 1.3156, 1.3209

Alternative scenario

RecommendationsSELL STOP
Entry Point1.3055
Take Profit1.3000
Stop Loss1.3080
Support levels1.2782, 1.2845, 1.2922, 1.2964, 1.3000, 1.3032, 1.3079, 1.3112, 1.3156, 1.3209
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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