Current trend
The market is waiting for the Bank of Canada interest rate decision at 17:00 (GMT+2), and most of the investors expect the growth to 1.25%, which will strengthen CAD. The general strengthening Canadian economy due to the growth of GDP, Retail Sales, and Consumer Price Index, support the rate increase. However, BOC still has some variants, supposing the maintenance of the rate on the same level, which will make the USD/CAD pair grow.
Now the demand on CAD is low, as the traders are waiting for the Bank of Canada interest rate decisions and the following statement of the regulator, which will affect the pair significantly and determine further dynamics and targets.
Support and resistance
On the 4-hour chart, the instrument was corrected to the middle line of Bollinger Bands, the downward trend is still strong. MACD histogram is in the negative zone, keeping sell signal.
Resistance levels: 1.2480, 1.2510, 1.2525, 1.2550, 1.2575.
Support levels: 1.2450, 1.2420, 1.2400, 1.2370.
Trading tips
Short positions can be opened at the level of 1.2440 with the targets at 1.2400, 1.2370 and stop loss at 1.2470.
Long positions can be opened at the level of 1.2510 with the target at 1.2600 and stop loss at 1.2480.
Implementation period: 1–3 days.
US Dollar vs Canadian
Buy Sell Spread
1.24455 1.24429 26
Scenario
Timeframe Day's Range
Recommendations SELL STOP
Entry Point 1.2440
Take Profit 1.2400, 1.2370
Stop Loss 1.2470
Support levels 1.2370, 1.2400, 1.2420, 1.2450, 1.2480, 1.2510, 1.2525, 1.2550, 1.2575
Alternative scenario
Recommendations BUY STOP
Entry Point 1.2510
Take Profit 1.2600
Stop Loss 1.2480
Support levels 1.2370, 1.2400, 1.2420, 1.2450, 1.2480, 1.2510, 1.2525, 1.2550, 1.2575
The market is waiting for the Bank of Canada interest rate decision at 17:00 (GMT+2), and most of the investors expect the growth to 1.25%, which will strengthen CAD. The general strengthening Canadian economy due to the growth of GDP, Retail Sales, and Consumer Price Index, support the rate increase. However, BOC still has some variants, supposing the maintenance of the rate on the same level, which will make the USD/CAD pair grow.
Now the demand on CAD is low, as the traders are waiting for the Bank of Canada interest rate decisions and the following statement of the regulator, which will affect the pair significantly and determine further dynamics and targets.
Support and resistance
On the 4-hour chart, the instrument was corrected to the middle line of Bollinger Bands, the downward trend is still strong. MACD histogram is in the negative zone, keeping sell signal.
Resistance levels: 1.2480, 1.2510, 1.2525, 1.2550, 1.2575.
Support levels: 1.2450, 1.2420, 1.2400, 1.2370.
Trading tips
Short positions can be opened at the level of 1.2440 with the targets at 1.2400, 1.2370 and stop loss at 1.2470.
Long positions can be opened at the level of 1.2510 with the target at 1.2600 and stop loss at 1.2480.
Implementation period: 1–3 days.
US Dollar vs Canadian
Buy Sell Spread
1.24455 1.24429 26
Scenario
Timeframe Day's Range
Recommendations SELL STOP
Entry Point 1.2440
Take Profit 1.2400, 1.2370
Stop Loss 1.2470
Support levels 1.2370, 1.2400, 1.2420, 1.2450, 1.2480, 1.2510, 1.2525, 1.2550, 1.2575
Alternative scenario
Recommendations BUY STOP
Entry Point 1.2510
Take Profit 1.2600
Stop Loss 1.2480
Support levels 1.2370, 1.2400, 1.2420, 1.2450, 1.2480, 1.2510, 1.2525, 1.2550, 1.2575