USD/CAD

Technical data of the currency pair:

Previous closing: 1.3005;
Daily range: 1.2969-1.3050;
Opening: 1.3005;
52- week range: 1.1916-1.4692;
Annual revenue: +2.77%;
Change in % for the previous day: +0.09.

Analytical review:

  • Over the last three trading sessions the CAD has significantly strengthened against the USD (over 300 points). During yesterday’s trading session the rally in the CAD was halted by strong support level of 1.2925.
  • Canadian macro-economic statistics released yesterday showed GDP in the country rose by 0.6% against the forecast of 0.3%.
  • The CAD is a commodity currency. Further rise in the CAD is supported by the increase in oil prices. Since the beginning of March the price of crude oil WTI has increased by over 14%.
  • “Commitments of Traders” shows ambiguous picture. Large speculators have decreased the number of long positions by 58237 contracts. Short positions have been reduced by 52142 contracts.
  • Important US economic data will be released today, including non-farm payrolls. The data may affect movement direction in the currency.

Summary:

  • At the moment the currency is traded in the demand zone of 1.2925-1.3005. Ambiguous US statistics and increased volatility put strong pressure on the currency pair.
  • According to “COT” large speculators do not have common opinion about the CAD.
  • Prior to the release of non-farm payrolls we do not expect changes in the trend. WE recommend to enter the market for opening trades in the short-term.

Trading tips for the currency pair USD/CAD

Long-term trading:
prior to publication of the US non-farm payrolls today, we do not expect changes in the movement of the CAD. At the moment it is advisable to refrain from opening long-term transactions on the pair USD/CAD. It is recommended to enter the market after the release of the American statistics and re-testing of the key support and resistance levels and in case of the respective confirmations (such as Price Action pattern).


Analytical review of the currency pair USD/CAD

Short-term trading: At the moment the currency has broken down and consolidated above the local resistance level of 1.3005. In case of maintaining and testing of the “mirrored” support level of 1.3005, we recommend to open long positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 1.3050, 1.3075 and 1.3120 with the use of trailing stops.


Analytical review of the currency pair USD/CAD




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