Current trend
USD strengthened against CAD at the trading on Thursday. The USD was supported by positive for the US economy data on the labor sector.
The number of initial jobless claims decreased, reaching 210K, which was 2K lower than the forecast. Continuing jobless claims amounted to 1.640M, which also was better than the forecast.
The key event of the day for the pair will be the publication of data on retail sales in Canada (14:30 GMT+2), as well as the publication of Core Consumer Price Index by the Bank of Canada (14:30 GMT+2). The market is expected to be highly volatile.
Support and resistance
On the H4 chart there is a correction of the upward movement, the pair is trading in the area of the upper line of Bollinger Bands. The price range is widened, indicating possible resumption of the uptrend. MACD histogram is in the positive area, the signal line is crossing the zero level and the histogram body from below, signaling for the opening of long positions.
Resistance levels: 1.3070, 1.3090, 1.3150.
Support levels: 1.3050, 1.3030, 1.3005, 1.2985, 1.2950, 1.2925.
Trading tips
Buy positions could be opened from the level of 1.3100 with target at 1.3150. Stop loss — 1.3070.
Short positions may be opened from the level of 1.3030 with target at 1.2985 and stop loss at 1.3060.
Implementation time: 1-3 days.
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 1.3100
Take Profit 1.3150
Stop Loss 1.3070
Key Levels 1.2925, 1.2950, 1.2985, 1.3005, 1.3030, 1.3050, 1.3070, 1.3090, 1.3150
Alternative scenario
Recommendation SELL STOP
Entry Point 1.3030
Take Profit 1.2985
Stop Loss 1.3060
Key Levels 1.2925, 1.2950, 1.2985, 1.3005, 1.3030, 1.3050, 1.3070, 1.3090, 1.3150
USD strengthened against CAD at the trading on Thursday. The USD was supported by positive for the US economy data on the labor sector.
The number of initial jobless claims decreased, reaching 210K, which was 2K lower than the forecast. Continuing jobless claims amounted to 1.640M, which also was better than the forecast.
The key event of the day for the pair will be the publication of data on retail sales in Canada (14:30 GMT+2), as well as the publication of Core Consumer Price Index by the Bank of Canada (14:30 GMT+2). The market is expected to be highly volatile.
Support and resistance
On the H4 chart there is a correction of the upward movement, the pair is trading in the area of the upper line of Bollinger Bands. The price range is widened, indicating possible resumption of the uptrend. MACD histogram is in the positive area, the signal line is crossing the zero level and the histogram body from below, signaling for the opening of long positions.
Resistance levels: 1.3070, 1.3090, 1.3150.
Support levels: 1.3050, 1.3030, 1.3005, 1.2985, 1.2950, 1.2925.
Trading tips
Buy positions could be opened from the level of 1.3100 with target at 1.3150. Stop loss — 1.3070.
Short positions may be opened from the level of 1.3030 with target at 1.2985 and stop loss at 1.3060.
Implementation time: 1-3 days.
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 1.3100
Take Profit 1.3150
Stop Loss 1.3070
Key Levels 1.2925, 1.2950, 1.2985, 1.3005, 1.3030, 1.3050, 1.3070, 1.3090, 1.3150
Alternative scenario
Recommendation SELL STOP
Entry Point 1.3030
Take Profit 1.2985
Stop Loss 1.3060
Key Levels 1.2925, 1.2950, 1.2985, 1.3005, 1.3030, 1.3050, 1.3070, 1.3090, 1.3150