Being the raw currency the Canadian dollar has traded down against the USDF for the second consecutive day because of the oil prices. According to the International Energy Agency (IEA) the world demand of oil will decline in the last 6 months of 2015 amid the increasing production of oil in the world.
At the press-conference on Wednesday the head of the Bank of Canada, Mr. Steven Poloz said the financial situation in the country is uncertain because the decline in the price of oil, high level of household debts and high housing prices lead are increasing risks to the financial system of the country.
The latest positive US statistics showing good economic situation in the USA contributes to the rise in the USD. If the next meeting of the US Fed, which will be held on 16-17 June, the plans to the first in the increase interest rates are not made, soft monetary policy implemented in Eurozone, Japan and Pacific region will trigger strengthening in the USD in the world market.
Today is Friday and before the week end traders usually lock in profit and adjust positions. After the opening of the American session some US news will be released, including producer price index for May at 15:30 (GMT+3) and consumer confidence index for June from Reuters/Michigan at 17:00 (GMT+3).
Support and resistance
The pair is near strong support level of 1.2290 (Fibonacci 23.6%) at the level of the moving average lines of ЕМА144 and ЕМА200 on the four-hour chart with the price at the level of 1.2330. On the four-hour chart the indicators OsMA and Stochastic give buy signals; the daily chart does not give a clear buy signals yet. Correction has not completed and the movement towards the long positions has only started. It is required to follow the US news, as it shows positive statistics, the pair will go up.
Support levels: 1.2290, 1.2255, 1.2200, 1.2120 and 1.1975.
Resistance levels: 1.2330, 1.2365, 1.2400, 1.2455 and 1.2525.
It is recommended to open long positions at the current price and from the level of 1.2290 with the targets of 1.2365 and 1.2400. Alternative scenario can be possible in case of breakdown of the level of .2290 (Fibonacci 23.6%). In this case the pair will go to 1.2255, 1.2200 and 1.2170.