Current trend
Last week the USD/CAD pair was growing due to the weakness of the Canadian dollar, caused by the growth of trade balance deficit in Canada and decrease of Ivey index to the 8-month minimum. The decrease of employment by 88K caused the growth of employment level to 5.9%, which affected CAD negatively, too.
US dollar was supported against its main competitors due to the decrease in the US stock market. As there was lack of key releases, the volatility, caused by fall of stocks, was the main factor for the growth of USD.
The pair is now consolidating around the resistance level of 1.2600, which can be the start point to reverse if the US stock market stabilizes.
Support and resistance
On the daily chart, the instrument is trading around the upper border of Bollinger Bands. MACD histogram is in the negative zone, the signal line is pointed upwards.
Resistance levels: 1.2600, 1.2685.
Support levels: 1.2550, 1.2490, 1.2420.
Trading tips
Long positions can be opened at the level of 1.2630 with the target at 1.2685 and stop loss at 1.2600.
Short positions can be opened at the level of 1.2480 with the target at 1.2420 and stop loss at 1.2510.
Implementation period: 1–3 days.
US Dollar vs Canadian
Buy Sell Spread
1.25724 1.257 24
Scenario
Timeframe Day's Range
Recommendations BUY STOP
Entry Point 1.2630
Take Profit 1.2685
Stop Loss 1.2600
Support levels 1.2420, 1.2490, 1.2550, 1.2600, 1.2685
Alternative scenario
Recommendations SELL STOP
Entry Point 1.2480
Take Profit 1.2420
Stop Loss 1.2510
Support levels 1.2420, 1.2490, 1.2550, 1.2600, 1.2685
Last week the USD/CAD pair was growing due to the weakness of the Canadian dollar, caused by the growth of trade balance deficit in Canada and decrease of Ivey index to the 8-month minimum. The decrease of employment by 88K caused the growth of employment level to 5.9%, which affected CAD negatively, too.
US dollar was supported against its main competitors due to the decrease in the US stock market. As there was lack of key releases, the volatility, caused by fall of stocks, was the main factor for the growth of USD.
The pair is now consolidating around the resistance level of 1.2600, which can be the start point to reverse if the US stock market stabilizes.
Support and resistance
On the daily chart, the instrument is trading around the upper border of Bollinger Bands. MACD histogram is in the negative zone, the signal line is pointed upwards.
Resistance levels: 1.2600, 1.2685.
Support levels: 1.2550, 1.2490, 1.2420.
Trading tips
Long positions can be opened at the level of 1.2630 with the target at 1.2685 and stop loss at 1.2600.
Short positions can be opened at the level of 1.2480 with the target at 1.2420 and stop loss at 1.2510.
Implementation period: 1–3 days.
US Dollar vs Canadian
Buy Sell Spread
1.25724 1.257 24
Scenario
Timeframe Day's Range
Recommendations BUY STOP
Entry Point 1.2630
Take Profit 1.2685
Stop Loss 1.2600
Support levels 1.2420, 1.2490, 1.2550, 1.2600, 1.2685
Alternative scenario
Recommendations SELL STOP
Entry Point 1.2480
Take Profit 1.2420
Stop Loss 1.2510
Support levels 1.2420, 1.2490, 1.2550, 1.2600, 1.2685