As a result of yesterday's trading, the Canadian dollar strengthened slightly against the US one.
The nearest support level is at the level of 1.2298 (Murrey [-1/8]), and resistance is at 1.2359. The demand for the Canadian currency was fueled yesterday by the statement of the US president regarding the North American Free Trade Agreement and the words of the Prime Minister of Canada, who also confirmed that negotiations on the new agreement are nearing the end, and this will reduce the country's dependence. The USD was also pressured by the statement of the head of the US Treasury Steven Mnuchin assessed that a weak dollar is beneficial for the country and allows to strengthen the competitiveness of goods on world markets.
The second positive factor which also supported the Canadian dollar is the continuing rally in the oil market, where the Brent price exceeded the USD 70 mark in vies of the continued decline in oil production due to the global OPEC+ agreement.
Today one should pay attention to the ECB meeting and the decision on key rate, as well as on the data on retail sales in Canada.
Support and resistance
Stochastic is at the level of 25 points and indicates the possible growth.
Resistance levels: 1.2359, 1.2390.
Support levels: 1.2298 1.2245.
Trading tips
Long positions may be opened at the current price with take-profit at 1.2359 and stop-loss at 1.2295.
US Dollar vs Canadian
Buy Sell Spread 1.23276 1.23254 22
Scenario
Timeframe Day's Range Recommendations BUY Entry Point 1.2314 Take Profit 1.2359 Stop Loss 1.2295 Support levels 1.2245, 1.2298, 1.2359, 1.2390