Current trend
Canadian dollar is weakening against the US one; the USD/CAD pair has been moving upwards during three weeks and gained around 20 points on Monday. The growth is due to the US strong macroeconomic data publication: ISM Manufacturing PMI has reached the level of 60.8 points, significantly exceeding the expectations. The index is a key indicator of the US economy, and its growth supports the USD.
Markit Manufacturing PMI has grown by 0.1% and reached the level of 53.1 points, which also supported the US currency. Construction Spending increased by 0.5% and strengthened the US dollar. On the other hand, the fall of oil prices by 2% affected CAD negatively. The growth of Canadian Markit Manufacturing PMI will affect the economy of the county positively.
Support and resistance
On the 4-hour chart the pair is growing within the narrow range, formed by Bollinger Bands. The price range is widen, which reflects the possibility of the upward trend development. MACD histogram is above the signal line, keeping a signal to open long positions.
Resistance levels: 1.2550, 1.2600.
Support levels: 1.2500, 1.2480, 1.2450, 1.2400, 1.2370, 1.2315, 1.2285.
Trading tips
Long positions can be opened at the current level with the target at 1.2600 and stop loss at 1.2490.
Short positions can be opened at the level of 1.2470 with the target at 1.2420 and stop loss at 1.2500.
Implementation period: 1-3 days.
Canadian dollar is weakening against the US one; the USD/CAD pair has been moving upwards during three weeks and gained around 20 points on Monday. The growth is due to the US strong macroeconomic data publication: ISM Manufacturing PMI has reached the level of 60.8 points, significantly exceeding the expectations. The index is a key indicator of the US economy, and its growth supports the USD.
Markit Manufacturing PMI has grown by 0.1% and reached the level of 53.1 points, which also supported the US currency. Construction Spending increased by 0.5% and strengthened the US dollar. On the other hand, the fall of oil prices by 2% affected CAD negatively. The growth of Canadian Markit Manufacturing PMI will affect the economy of the county positively.
Support and resistance
On the 4-hour chart the pair is growing within the narrow range, formed by Bollinger Bands. The price range is widen, which reflects the possibility of the upward trend development. MACD histogram is above the signal line, keeping a signal to open long positions.
Resistance levels: 1.2550, 1.2600.
Support levels: 1.2500, 1.2480, 1.2450, 1.2400, 1.2370, 1.2315, 1.2285.
Trading tips
Long positions can be opened at the current level with the target at 1.2600 and stop loss at 1.2490.
Short positions can be opened at the level of 1.2470 with the target at 1.2420 and stop loss at 1.2500.
Implementation period: 1-3 days.