Current trend
Yesterday the pair USD/CAD traded in both directions. The US currency was supported by the release of strong macroeconomic data on the labor market and CPI in the USA. However after some time the pair moved to decrease in view of new information that North Korea is about to test an inter-continental missile with a nuclear warhead.
Along with that, taking into account long-term growth of the Canadian economy, increased return on state bonds, and oil prices above $50 per barrel, USD/CAD is very likely to trade below 1.2100. Moreover, the majority of experts believe CAD is the best currency for purchasing.
The key event of today will be the release of the data on retail sales in the USA. Harvey and Irma storms as well as weak growth of hourly salary had a negative impact on them, and the scenario of further fall of the trading instrument is most likely. Moreover, attention should be paid to Baker Hughes report on the number of active drilling platforms in the USA.
Support and resistance
On D1 chart the pair is trading in the lower part of Bollinger Bands. The indicator is directed to the side, and the price range is widening, indicating the continuation of the current downward trend. MACD histogram is in the negative zone keeping a strong sale signal. Stochastic does not give clear signal for entering the market.
Support levels: 1.2130, 1.2080, 1.2000, 1.1950, 1.1920.
Resistance levels: 1.2230, 1.2325, 1.2420, 1.2545.
Trading tips
Short positions may be opened at the current price with targets at 1.2100, 1.2060 and stop-loss at 1.2210. The period of implementation is 1-2 days.
Long positions may be opened from the level of 1.2230 with targets at 1.2325 and stop-loss at 1.2170. The period of implementation is 1-3 days.
Yesterday the pair USD/CAD traded in both directions. The US currency was supported by the release of strong macroeconomic data on the labor market and CPI in the USA. However after some time the pair moved to decrease in view of new information that North Korea is about to test an inter-continental missile with a nuclear warhead.
Along with that, taking into account long-term growth of the Canadian economy, increased return on state bonds, and oil prices above $50 per barrel, USD/CAD is very likely to trade below 1.2100. Moreover, the majority of experts believe CAD is the best currency for purchasing.
The key event of today will be the release of the data on retail sales in the USA. Harvey and Irma storms as well as weak growth of hourly salary had a negative impact on them, and the scenario of further fall of the trading instrument is most likely. Moreover, attention should be paid to Baker Hughes report on the number of active drilling platforms in the USA.
Support and resistance
On D1 chart the pair is trading in the lower part of Bollinger Bands. The indicator is directed to the side, and the price range is widening, indicating the continuation of the current downward trend. MACD histogram is in the negative zone keeping a strong sale signal. Stochastic does not give clear signal for entering the market.
Support levels: 1.2130, 1.2080, 1.2000, 1.1950, 1.1920.
Resistance levels: 1.2230, 1.2325, 1.2420, 1.2545.
Trading tips
Short positions may be opened at the current price with targets at 1.2100, 1.2060 and stop-loss at 1.2210. The period of implementation is 1-2 days.
Long positions may be opened from the level of 1.2230 with targets at 1.2325 and stop-loss at 1.2170. The period of implementation is 1-3 days.