Current trend
On Friday, USD strengthened against CAD due to the growth of Nonfarm Payrolls data by 201 thousand, which was higher than the forecast of 191 thousand. The published report dispelled almost all doubts about the rate increase this month. August US average hourly earnings increased by 0.4% MoM and by 2.9% YoY, supporting USD.
Cad is under pressure of August’s growth of unemployment to 6.0% against the forecast of 5.9% and the decrease of employment by 51.6K against the forecast of an increase by 5.0K.
Support and resistance
On the 4-hour chart, the instrument was corrected to the midline of Bollinger bands, the price range narrowed. MACD histogram is in the positive area, preserving the signal to open long positions.
Resistance levels: 1.3207, 1.3225, 1.3286, 1.3382.
Support levels: 1.3158, 1.3127, 1.3102, 1.3043, 1.3006, 1.2935, 1.2886.
Trading tips
Long positions can be opened from the current level with the target at 1.3225 and stop loss 1.3130.
Short positions can be opened from the level of 1.3120 with the target at 1.3050 and stop loss 1.3158.
Implementation period: 1–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 1.3169
Take Profit 1.3225
Stop Loss 1.3130
Key Levels 1.2886, 1.2935, 1.3006, 1.3043, 1.3102, 1.3127, 1.3158, 1.3207, 1.3225, 1.3286, 1.3382
Alternative scenario
Recommendation SELL STOP
Entry Point 1.3120
Take Profit 1.3050
Stop Loss 1.3158
Key Levels 1.2886, 1.2935, 1.3006, 1.3043, 1.3102, 1.3127, 1.3158, 1.3207, 1.3225, 1.3286, 1.3382
On Friday, USD strengthened against CAD due to the growth of Nonfarm Payrolls data by 201 thousand, which was higher than the forecast of 191 thousand. The published report dispelled almost all doubts about the rate increase this month. August US average hourly earnings increased by 0.4% MoM and by 2.9% YoY, supporting USD.
Cad is under pressure of August’s growth of unemployment to 6.0% against the forecast of 5.9% and the decrease of employment by 51.6K against the forecast of an increase by 5.0K.
Support and resistance
On the 4-hour chart, the instrument was corrected to the midline of Bollinger bands, the price range narrowed. MACD histogram is in the positive area, preserving the signal to open long positions.
Resistance levels: 1.3207, 1.3225, 1.3286, 1.3382.
Support levels: 1.3158, 1.3127, 1.3102, 1.3043, 1.3006, 1.2935, 1.2886.
Trading tips
Long positions can be opened from the current level with the target at 1.3225 and stop loss 1.3130.
Short positions can be opened from the level of 1.3120 with the target at 1.3050 and stop loss 1.3158.
Implementation period: 1–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 1.3169
Take Profit 1.3225
Stop Loss 1.3130
Key Levels 1.2886, 1.2935, 1.3006, 1.3043, 1.3102, 1.3127, 1.3158, 1.3207, 1.3225, 1.3286, 1.3382
Alternative scenario
Recommendation SELL STOP
Entry Point 1.3120
Take Profit 1.3050
Stop Loss 1.3158
Key Levels 1.2886, 1.2935, 1.3006, 1.3043, 1.3102, 1.3127, 1.3158, 1.3207, 1.3225, 1.3286, 1.3382