USD/CAD: consolidation near local lows

FX:USDCAD   U.S. Dollar/Canadian Dollar
54 0 2
Current trend

At the end of the week, the Canadian Dollar             has been trading mixed against the US Dollar             . Having reached new local             lows on Wednesday, the pair has started correcting up amid the statements made by the Federal Reserve officials.

The results of the recent Bank of Canada monetary policy meeting had a high impact on the market. However, it should be noted the Canadian currency started strengthening some time after the results were released.
As expected, interest rates were kept unchanged at 0.5% as commodity markets instability affects the process of Canada’s economic recovery. At the same time, the regulator revised up its forecast for 2016 that can be explained by the recent growth in oil             prices.

Support and resistance

Bollinger Bands on the daily chart is directed down while the price range is getting narrower. MACD is slightly growing and still keeping its sell signal. Stochastic is in the oversold zone and trying to turn up indicating the possibility of an upward correction in the short term.
The indicators recommend waiting for clearer trading signals.

Support levels: 1. 2800             , 1.2744 (13 April             low), 1.2700 (mid-July 2015 level), 1.2650.
Resistance levels: 1.2857, 1.2897 (14 April             high), 1.2952, 1.3000 (11 April             level), 1.3037, 1.3100, 1.3180 (7 April             high), 1.3218 (5 April             high), 1.3300.

Trading tips

Long positions can be opened after the price rebounds at the level of 1. 2800             (with appropriate indicators signals) with the target at 1.3000 and stop-loss at 1.2740.
Short positions can be opened after the level of 1.2744 is broken down with targets at 1.2650, 1.2600 and stop-loss at 1. 2800             .
More analytic from LiteForex
United States
United Kingdom
Việt Nam
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out