Current trend

On Wednesday, the USD/CAD pair significantly fell amid poor macroeconomic statistics from the US. Retail Sales data for September showed a growth of only 0.1%, while experts forecasted the 0.2% growth. At the same time, Retail Sales excluding Autos for the same period fell by 0.3% against forecasted 0.1% fall.

Support and resistance

Bollinger Bands on the daily chart is moving down. MACD is falling and giving a sell signal. Stochastic turned down near the middle of its range.

The indicators recommend short positions.

Support levels: 1.2900 (9 and 12 October lows), 1.2861 (27 July low), 1.2800, 1.2765, 1.2700, 1.2650 (10 July low).

Resistance levels: 1.2951 (local high), 1.3000 (psychologically important level), 1.3053, 1.3100, 1.3159, 1.3212, 1.3265, 1.3300 (beginning of October high), 1.3352, 1.3416, 1.3457 (29 September high), 1.3500.

Trading tips

Short positions can be opened after the breakdown of the level of 1.2854 with targets at 1.2800, 1.2740 and stop-loss at 1.2880. Validity – 1-2 days.

Long positions can be opened after the breakout of the level of 1.2920 with the target at 1.1300 and stop-loss at 1.2900. Validity – 1-2 days.

USD/CAD: USD under pressure again

USD/CAD: USD under pressure again

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.

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