Current trend
Yesterday CAD was strengthening against US dollar.
This happened despite the weakening of international trade data published by the Statistics Canada and the decline in Ivey's business activity index from 61.0 to 55.2 points. The fall in the pair was largely due to an unexpected increase in the US trade balance deficit; the figure came out worse than forecasted, reaching USD 53.1 billion, which indicates a decrease in demand for US exports, which could cause a reduction in trade, weakening the USD exchange rate.
Today, the pair began to grow and is now trading at around 1.2510 mark. Traders should focus on the data on construction permits in Canada (16:30 GMT+2), as well as the release of data on the change in the stock of oil and oil products from the EIA in the US (18:30 GMT+2). The market is expected to be moderately volatile.
Support and resistance
On the H4 chart the instrument is trading between the upper and middle lines of Bollinger Bands. MACD histogram is in the positive area keeping a signal for the opening of long positions.
Support levels: 1.2480, 1.2450, 1.2420, 1.2400.
Resistance levels: 1.2510, 1.2525, 1.2550, 1.2575, 1.2600.
Trading tips
Buy orders may be opened from the current level with the target at 1.2560 and stop-loss at 1.2480 mark.
Short positions may be opened from the level of 1.2480 with the target at 1.2420 and stop-loss at 1.2510.
Implementation time: 1-3 days.
US Dollar vs Canadian
Buy Sell Spread
1.25165 1.25141 24
Scenario
Timeframe Day's Range
Recommendations BUY
Entry Point 1.2506
Take Profit 1.2560
Stop Loss 1.2480
Support levels 1.2400, 1.2420, 1.2450, 1.2480, 1.2510, 1.2525, 1.2550, 1.2575, 1.2600
Alternative scenario
Recommendations SELL STOP
Entry Point 1.2480
Take Profit 1.2420
Stop Loss 1.2510
Support levels 1.2400, 1.2420, 1.2450, 1.2480, 1.2510, 1.2525, 1.2550, 1.2575, 1.2600
Yesterday CAD was strengthening against US dollar.
This happened despite the weakening of international trade data published by the Statistics Canada and the decline in Ivey's business activity index from 61.0 to 55.2 points. The fall in the pair was largely due to an unexpected increase in the US trade balance deficit; the figure came out worse than forecasted, reaching USD 53.1 billion, which indicates a decrease in demand for US exports, which could cause a reduction in trade, weakening the USD exchange rate.
Today, the pair began to grow and is now trading at around 1.2510 mark. Traders should focus on the data on construction permits in Canada (16:30 GMT+2), as well as the release of data on the change in the stock of oil and oil products from the EIA in the US (18:30 GMT+2). The market is expected to be moderately volatile.
Support and resistance
On the H4 chart the instrument is trading between the upper and middle lines of Bollinger Bands. MACD histogram is in the positive area keeping a signal for the opening of long positions.
Support levels: 1.2480, 1.2450, 1.2420, 1.2400.
Resistance levels: 1.2510, 1.2525, 1.2550, 1.2575, 1.2600.
Trading tips
Buy orders may be opened from the current level with the target at 1.2560 and stop-loss at 1.2480 mark.
Short positions may be opened from the level of 1.2480 with the target at 1.2420 and stop-loss at 1.2510.
Implementation time: 1-3 days.
US Dollar vs Canadian
Buy Sell Spread
1.25165 1.25141 24
Scenario
Timeframe Day's Range
Recommendations BUY
Entry Point 1.2506
Take Profit 1.2560
Stop Loss 1.2480
Support levels 1.2400, 1.2420, 1.2450, 1.2480, 1.2510, 1.2525, 1.2550, 1.2575, 1.2600
Alternative scenario
Recommendations SELL STOP
Entry Point 1.2480
Take Profit 1.2420
Stop Loss 1.2510
Support levels 1.2400, 1.2420, 1.2450, 1.2480, 1.2510, 1.2525, 1.2550, 1.2575, 1.2600