Current trend

At the beginning of the week, a downward correction in the USD/CAD pair has stopped developing amid growing demand for the US Dollar.

At present, not much macroeconomic data is released, and market participants pay almost no attention to it. Thus, the US currency managed to strengthen on Monday despite very poor statistics on Dallas Fed Manufacturing Business Index. In November, the indicator dropped to -20.1 from -4.9 points.

Support and resistance

Bollinger Bands indicator on the daily chart is still growing while the price range is narrowing actively down. MACD is falling and keeping a weak sell signal. Stochastic approached the border of the oversold zone and turned horizontally.

It is recommended to wait for clearer trading signals.

Support levels: 1.3850, 1.3780, 1.3700, 1.3650, 1.3622, 1.3554, 1.3500 (7 December level), 1.3457.

Resistance levels: 1.3915 (28 December high), 1.4000 (18 December high), 1.4050, 1.4100.

Trading tips

Long positions can be opened after the breakout of the level of 1.3910 with the target at 1.4000 and stop-loss at 1.3870. Validity – 2-3 days.

Short positions can be opened after the breakdown of the level of 1.3766 with the target at 1.3516 and stop-loss at 1.3800. Validity – 2-4 days.

USD/CAD: flat starts

USD/CAD: flat starts

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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