Technical data of the currency pair:

Previous closing: 1.2604;
Daily range: 1.2597-1.2634;
Opening: 1.2604;
52 - week range: 1.1916-1.4692;
Annual revenue: +4.33%;
Change in % for the previous day: -0.53.

Analytical review:

  • In the last three trading sessions the CAD has traded in the range of 1.2610-1.2750. During yesterday’s trading session the currency pair has reached the bottom limit of the trading range. The price of the Canadian dollar has grown by 0.53%;
  • Last week, important economic Canadian statistics was released, which showed that the base index of consumer prices increased by 0.2% up to 0.7% against the forecast of 0.5%. Base index of retail sales was 0.2%, exceeding market expectations of -0.5%;
  • According to US Commerce Department the volume orders for durable goods in March fell by 0.2% against the forecast of the rise up to 0.5%;
  • The Canadian dollar is a commodity currency. The rise in the CAD is triggered by the increase in oil prices. During yesterday’s trading session the price of crude oil WTI has grown by 4.43%;
  • “Commitments of Traders” shows ambiguous picture. Large speculators have increased the number of long positions by 4110 contracts. Short positions have been also increased by 11140 contracts.

Summary:

  • Positive Canadian economic statistics, weak US statistics and increased volatility in the financial market put significant pressure on the currency pair. The rise in oil prices supports the demand for the CAD. According to “COT” large investors do not have common opinion about the CAD;
  • It is likely that the CAD will grow against the USD. It is recommended to open short positions.

Trading tips for the currency pair USD/CAD

Medium-term trading: At the moment the currency is traded near the local support level of 1.2610. After breaking out and testing of this level and in case of the respective confirmation (such as Price Action pattern), we recommend to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.2550, 1.2480 and 1.2410 with the use of trailing stops.

 

Analytical review of the currency pair USD/CAD

Short-term trading: on the chart with the timeframe 15M the currency is traded in the range of 1.2595-1.2630. After breaking out and testing of the lower limit (1.2595) of the trading range we recommend to open short positions. Risk per trade is not more than 3% of capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts at the levels of 1.2550, 1.2510 and 1.2470 with the use of trailing stop.

Analytical review of the currency pair USD/CAD




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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