Current trend
Yesterday US dollar strengthened against Canadian currency due to the positive US employment market data and negative Canadian statistics. However, as the sellers were focused on the stock market yesterday and were active, they weakened USD against its main competitors.
US Continuing Jobless Claims reached 1.875 million, which was below the expected number of 1.930 million and supported the national currency. Initial Jobless Claims volume reached 222K, which was also better than expected value of 230K, and reflects the strengthening of the employment market.
Canadian Retail Sales data disappointed the traders: the index decreased by 0.8%, while the growth of 0.2% was expected. Retail Sales ex Autos fell by 1.8%, which is the record decrease since January 2015.
Today the investors are focused on the Consumer Price Index release at 15:30 (GMT+2) in Canada, high level of volatility is expected in the market.
Support and resistance
On the daily chart, instrument is growing along the upper border of Bollinger Bands. MACD histogram is in the positive zone, the signal line crosses the zero line and the histogram’s body upwards, giving a signal to open long positions.
Resistance levels: 1.2750, 1.2785, 1.2820, 1.2850.
Support levels: 1.2685, 1.2600, 1.2550, 1.2490.
Trading tips
Long positions can be opened at the current level with the target at 1.2785 and stop loss at 1.2680.
Short positions can be opened at the level of 1.2670 with the target at 1.2600 and stop loss at 1.2700.
Implementation period: 1–3 days.
US Dollar vs Canadian
Buy Sell Spread
1.26859 1.2683 29
Scenario
Timeframe Day's Range
Recommendations BUY
Entry Point 1.2707
Take Profit 1.2785
Stop Loss 1.2680
Support levels 1.2490, 1.2550, 1.2600, 1.2685, 1.2750, 1.2785, 1.2820, 1.2850
Alternative scenario
Recommendations SELL STOP
Entry Point 1.2670
Take Profit 1.2600
Stop Loss 1.2700
Support levels 1.2490, 1.2550, 1.2600, 1.2685, 1.2750, 1.2785, 1.2820, 1.2850
Yesterday US dollar strengthened against Canadian currency due to the positive US employment market data and negative Canadian statistics. However, as the sellers were focused on the stock market yesterday and were active, they weakened USD against its main competitors.
US Continuing Jobless Claims reached 1.875 million, which was below the expected number of 1.930 million and supported the national currency. Initial Jobless Claims volume reached 222K, which was also better than expected value of 230K, and reflects the strengthening of the employment market.
Canadian Retail Sales data disappointed the traders: the index decreased by 0.8%, while the growth of 0.2% was expected. Retail Sales ex Autos fell by 1.8%, which is the record decrease since January 2015.
Today the investors are focused on the Consumer Price Index release at 15:30 (GMT+2) in Canada, high level of volatility is expected in the market.
Support and resistance
On the daily chart, instrument is growing along the upper border of Bollinger Bands. MACD histogram is in the positive zone, the signal line crosses the zero line and the histogram’s body upwards, giving a signal to open long positions.
Resistance levels: 1.2750, 1.2785, 1.2820, 1.2850.
Support levels: 1.2685, 1.2600, 1.2550, 1.2490.
Trading tips
Long positions can be opened at the current level with the target at 1.2785 and stop loss at 1.2680.
Short positions can be opened at the level of 1.2670 with the target at 1.2600 and stop loss at 1.2700.
Implementation period: 1–3 days.
US Dollar vs Canadian
Buy Sell Spread
1.26859 1.2683 29
Scenario
Timeframe Day's Range
Recommendations BUY
Entry Point 1.2707
Take Profit 1.2785
Stop Loss 1.2680
Support levels 1.2490, 1.2550, 1.2600, 1.2685, 1.2750, 1.2785, 1.2820, 1.2850
Alternative scenario
Recommendations SELL STOP
Entry Point 1.2670
Take Profit 1.2600
Stop Loss 1.2700
Support levels 1.2490, 1.2550, 1.2600, 1.2685, 1.2750, 1.2785, 1.2820, 1.2850