Current trend

The US currency against the Canadian dollar continues to be traded in the medium-term uptrend.

The increased demand for the US dollar remains the main catalyst of the movement since the fundamental releases were ambiguous. Last week, negative data on the labor market and major US indices came out, and Canada showed strong retail sales and inflation. After that, the pair received a new impulse for growth and is now testing local maxima.

At the end of the week, FOMC minutes will be published, as well as data on the growth rates of the economies of the United States and Canada for Q3 2018.

Support and resistance

Amid increased demand, USD may head to the highs of mid-June. After that, one can expect the formation of a protracted corrective movement with targets at 1.3175, 1.3050. The pair maintains an uptrend, which indicates the relevance of long positions.

Technical indicators on H4 chart and above confirm the forecast: MACD shows a significant growth in the volume of long positions and Bollinger Bands are directed upwards.

Support levels: 1.3290, 1.3250, 1.3225, 1.3175, 1.3050, 1.3010, 1.2970.

Resistance levels: 1.3330, 1.3355, 1.3375, 1.3390, 1.3430, 1.3470.

Trading tips

Long positions may be opened from the current level. Deferred long positions may be opened from 1.3250, 1.3225 with targets at 1.3375, 1.3390 and stop loss at 1.3180.

US Dollar vs Canadian

BuySellSpread
1.339061.33786120

Scenario

TimeframeWeekly
RecommendationsBUY
Entry Point1.3322
Take Profit1.3375, 1.3390
Stop Loss1.3300
Support levels1.2970, 1.3010, 1.3050, 1.3175, 1.3225, 1.3250, 1.3290, 1.3330, 1.3355, 1.3375, 1.3390, 1.3430, 1.3470

Alternative scenario

RecommendationsBUY LIMIT
Entry Point1.3250, 1.3225
Take Profit1.3375, 1.3390
Stop Loss1.3180
Support levels1.2970, 1.3010, 1.3050, 1.3175, 1.3225, 1.3250, 1.3290, 1.3330, 1.3355, 1.3375, 1.3390, 1.3430, 1.3470
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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