Current trend

While the US economy is growing steadily, Canada's economy is facing risks due to a decline in oil prices and a slowdown in the GDP. The Bank of Canada aims to continue its loose monetary policy. As long as oil prices are lowering, the USD/CAD pair will keep strengthening.

Support and resistance

Yesterday, when the Federal Reserve interest rate decision was announced, the USD/CAD pair fell by 100 points, but later, after a press conference was given by the Fed's Chair Janet Yellen, the price grew back to the level of 1.3180, from which a decline started today. The pair broke down the strong support levels of 1.3190 (ЕМА144), 1.3145 (ЕМА200) on the 4-hour chart and is heading towards the support level of 1.3065 (ЕМА50 on the daily chart).

If the decline continues, the pair may reach the levels of 1.2975, 1.2920. If a short-term upward correction in oil prices finishes, an upward trend in the USD/CAD pair is likely to resume.

OsMA and Stochastic indicators on the 4-hour and daily charts recommend short positions.

Support levels: 1.2920, 1.2975, 1.3000, 1.3065.

Resistance levels: 1.3145, 1.3190, 1.3300, 1.3350.

Trading tips

Long positions can be opened above the level of 1.3070 with targets at 1.3110, 1.3150 and stop-loss at 1.3045.

Short positions become valid if the level of 1.3040 is broken down with targets at 1.3020, 1.3000 and stop-loss at 1.3065.

USD/CAD: review and forecast

USD/CAD: review and forecast

 

 




The material published on this page is produced by LiteForex 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.



Follow us in social networks!
Live Chat
Leave feedback