Current trend
On Friday, USD declined against CAD after the release of mixed data from the US market. Nonfarm Payrolls in June was better than expected but lower than the previous value and amounted to 213K. Unemployment rate rose from 3.8% to 4.0%. The deterioration in the labor market and trade wars can cause FOMC members to slow down the interest rate increases hike. Also, the official start of the China-US trade war contributed to the weakening of USD: on Friday, US 25% tariffs on 818 Chinese goods worth $34 billion entered into force.
The data for Canada were also contradictory. The rate was supported by Net Change in Employment growth to 31.8 and an increase in Participation rate to 65.5%. However, Unemployment Rate increased by 0.2% and reached 6%, which indicates a lack of growth in the Canadian labor market and is a negative factor for the currency.
Support and resistance
As there is lack of significant macroeconomic releases today, it is better to focus on the technical indicators’ readings. On the 4-hour chart, the instrument is falling along the lower border of Bollinger bands, the price range is widened. MACD histogram is in the negative area, keeping the signal to the opening of short positions.
Resistance levels: 1.3130, 1.3160, 1.3200.
Support levels: 1.3080, 1.3050, 1.3025, 1.3000.
Trading tips
Short positions can be opened at the level 1.3080 with the target at 1.3025. Stop loss is 1.3110.
Long positions can be opened from the level of 1.3140 with the target at 1.3200 and stop loss 1.3110.
Implementation period: 1–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL
Entry Point 1.3082
Take Profit 1.3025
Stop Loss 1.3110
Key Levels 1.3000, 1.3025, 1.3050, 1.3080, 1.3130, 1.3160, 1.3200
Alternative scenario
Recommendation BUY STOP
Entry Point 1.3140
Take Profit 1.3200
Stop Loss 1.3110
Key Levels 1.3000, 1.3025, 1.3050, 1.3080, 1.3130, 1.3160, 1.3200
On Friday, USD declined against CAD after the release of mixed data from the US market. Nonfarm Payrolls in June was better than expected but lower than the previous value and amounted to 213K. Unemployment rate rose from 3.8% to 4.0%. The deterioration in the labor market and trade wars can cause FOMC members to slow down the interest rate increases hike. Also, the official start of the China-US trade war contributed to the weakening of USD: on Friday, US 25% tariffs on 818 Chinese goods worth $34 billion entered into force.
The data for Canada were also contradictory. The rate was supported by Net Change in Employment growth to 31.8 and an increase in Participation rate to 65.5%. However, Unemployment Rate increased by 0.2% and reached 6%, which indicates a lack of growth in the Canadian labor market and is a negative factor for the currency.
Support and resistance
As there is lack of significant macroeconomic releases today, it is better to focus on the technical indicators’ readings. On the 4-hour chart, the instrument is falling along the lower border of Bollinger bands, the price range is widened. MACD histogram is in the negative area, keeping the signal to the opening of short positions.
Resistance levels: 1.3130, 1.3160, 1.3200.
Support levels: 1.3080, 1.3050, 1.3025, 1.3000.
Trading tips
Short positions can be opened at the level 1.3080 with the target at 1.3025. Stop loss is 1.3110.
Long positions can be opened from the level of 1.3140 with the target at 1.3200 and stop loss 1.3110.
Implementation period: 1–3 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL
Entry Point 1.3082
Take Profit 1.3025
Stop Loss 1.3110
Key Levels 1.3000, 1.3025, 1.3050, 1.3080, 1.3130, 1.3160, 1.3200
Alternative scenario
Recommendation BUY STOP
Entry Point 1.3140
Take Profit 1.3200
Stop Loss 1.3110
Key Levels 1.3000, 1.3025, 1.3050, 1.3080, 1.3130, 1.3160, 1.3200