Current trend
On Monday, the Canadian dollar strengthened against the US one amid the general weakness of the latter, caused by US-China trade tensions.
USD is pressured by the development of the trade conflict. According to The Wall Street Journal, the PRC government may refuse to participate in trade negotiations with the US scheduled for September 27–28 if the US administration introduces increased duties on Chinese goods worth USD 200 billion this week. Tariffs can be increased by 10%, and not by 25%. Thus, the negative effect on the American consumers can be mitigated, since ultimately they will have to pay for a new round of the trade war.
The volume of purchases of Canadian securities by foreigners increased by USD 12.65 billion, which was a favorable factor for CAD. The pair's downward movement is still hampered by the expectation of the US-Canada negotiations on the trade agreement to be held this week.
Support and resistance
On H4 chart, the instrument was corrected to the midline of Bollinger Bands, the price range has narrowed. MACD histogram is in the negative zone keeping a signal for the opening of short positions.
Support levels: 1.3015, 1.3000, 1.2980, 1.2925, 1.2900, 1.2885.
Resistance levels: 1.3042, 1.3065, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225.
Trading tips
Sell orders may be opened from the level of 1.3000 with the target at 1.2950 and stop loss at 1.3030.
Long positions may be opened from 1.3065 with the target at 1.3125 and stop loss at 1.3035.
Implementation time: 1-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 1.3000
Take Profit 1.2950
Stop Loss 1.3030
Key Levels 1.2885, 1.2900, 1.2925, 1.2980, 1.3000, 1.3015, 1.3042, 1.3065, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225
Alternative scenario
Recommendation BUY STOP
Entry Point 1.3065
Take Profit 1.3125
Stop Loss 1.3035
Key Levels 1.2885, 1.2900, 1.2925, 1.2980, 1.3000, 1.3015, 1.3042, 1.3065, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225
On Monday, the Canadian dollar strengthened against the US one amid the general weakness of the latter, caused by US-China trade tensions.
USD is pressured by the development of the trade conflict. According to The Wall Street Journal, the PRC government may refuse to participate in trade negotiations with the US scheduled for September 27–28 if the US administration introduces increased duties on Chinese goods worth USD 200 billion this week. Tariffs can be increased by 10%, and not by 25%. Thus, the negative effect on the American consumers can be mitigated, since ultimately they will have to pay for a new round of the trade war.
The volume of purchases of Canadian securities by foreigners increased by USD 12.65 billion, which was a favorable factor for CAD. The pair's downward movement is still hampered by the expectation of the US-Canada negotiations on the trade agreement to be held this week.
Support and resistance
On H4 chart, the instrument was corrected to the midline of Bollinger Bands, the price range has narrowed. MACD histogram is in the negative zone keeping a signal for the opening of short positions.
Support levels: 1.3015, 1.3000, 1.2980, 1.2925, 1.2900, 1.2885.
Resistance levels: 1.3042, 1.3065, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225.
Trading tips
Sell orders may be opened from the level of 1.3000 with the target at 1.2950 and stop loss at 1.3030.
Long positions may be opened from 1.3065 with the target at 1.3125 and stop loss at 1.3035.
Implementation time: 1-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 1.3000
Take Profit 1.2950
Stop Loss 1.3030
Key Levels 1.2885, 1.2900, 1.2925, 1.2980, 1.3000, 1.3015, 1.3042, 1.3065, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225
Alternative scenario
Recommendation BUY STOP
Entry Point 1.3065
Take Profit 1.3125
Stop Loss 1.3035
Key Levels 1.2885, 1.2900, 1.2925, 1.2980, 1.3000, 1.3015, 1.3042, 1.3065, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225