Current trend

USD continues to trade in a broad upward trend against CAD.

The pair demonstrates a significant upward momentum, and then sharply decreases. In late October, the price went up, but this trend gave way to a sharp fall in early November. Yesterday, the pair fell by more than 100 points, today the momentum has remained.

The main catalyst for the decline is the weakening of the US currency due to the release of yesterday's weak data on the US labor market. Today, special attention should be paid to statistics on Unemployment Rate and Nonfarm Payrolls in the US.

Support and resistance

Technically, the pair is approaching the lower boundary of the ascending channel, which may indicate a change in momentum from the level of 1.3030. Chances are high that the uptrend will continue, which is confirmed by the technical indicators on the D1 chart and above. MACD indicates the preservation of the high volume of long positions, and Bollinger Bands are still directed upwards.

Resistance levels: 1.3060, 1.3110, 1.3130, 1.3150, 1.3180, 1.3225.

Support levels: 1.3030, 1.3000, 1.2975, 1.2910, 1.2885, 1.2860.

Trading tips

In this situation, long positions may be opened from the current level with target at 1.3225 and stop loss at 1.2990.

US Dollar vs Canadian

BuySellSpread
1.31731.3170921

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point1.3055
Take Profit1.3225
Stop Loss1.2990
Support levels1.2860, 1.2885, 1.2910, 1.2975, 1.3000, 1.3030, 1.3060, 1.3110, 1.3130, 1.3150, 1.3180, 1.3225
USD/CAD: the upward tendency remains

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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