At the trading session of last Friday on 17 April, trading in the pair USD/CAD was mixed. Immediately after the release of macro-economic data on the USA and Canadian inflation rates, the pair USD/CAD fell over 100 points but soon after the price went up for over 180 points. According to the reported data, inflation in Canada amounted to 2.4% in March. In the USA, inflation rate in March was 1.8%. The results of Friday’s trading session showed that investors put more trust to the American economy.
Today, on 20 April the pair USD/CAD started trades with the decline. A speech of the head of the Bank of Canada Mr. Poloz, will represent interest among the other fundamental news.
Support and resistance
On the four-hour chart technical indicators give mixed signals. MACD histogram is in the negative zone; however, its volumes are decreasing, which indicates that sellers’ influence reducing. Bollinger bands are directed downwards showing the end of upward correction and resumption of downward movement.
Resistance levels: 1.2215, 1.2240, 1.2270 and 1.2326.
Support levels: 1.2180, 1.2140, 1.2085 and 1.2050.
Sell positions can be opened if the price breaks down the level of 1.2180. After that the price can go to 1.2140 and probably up to 1.2085. Upward movement can take place only after consolidation of the price above resistance level of 1.2240. In this case buyers will try to raise the price up to 1.2270 and 1.2326.