USD/CAD: general analysis
23 August 2018, 12:37
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL |
| Entry Point | 1.3043 |
| Take Profit | 1.2960 |
| Stop Loss | 1.3070 |
| Key Levels | 1.2928, 1.2960, 1.2986, 1.3047, 1.3087, 1.3100, 1.3173 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 1.3100 |
| Take Profit | 1.3170 |
| Stop Loss | 1.3070 |
| Key Levels | 1.2928, 1.2960, 1.2986, 1.3047, 1.3087, 1.3100, 1.3173 |
Current trend
Yesterday, CAD strengthened against USD due to the closing of long positions after a general weakening, which was promoted by the recognition of Donald Trump's lawyer Michael Cohen with his fault in violations during the election campaign and subsequent accusations against the president. A decrease in Retail Sales in Canada by 0.2% had almost no effect on the rate, FOMC minutes affects USD negatively in the short term.
Investors are focused on the beginning of two-day trade negotiations between the US and China in Washington and FOMC Minutes release. US-China trade talks will be the first after a series of unsuccessful May consultations. President Trump has already noted that the Chinese authorities cannot offer the US an acceptable agreement. Representatives of the Chinese government, on the contrary, are hoping for a positive result, as stated on Tuesday by the representative of the Ministry of Foreign Affairs of the People's Republic of China, Lu Kang. Market participants believe that these talks can be the first in a series of contacts, the culmination of which will be the meeting of Donald Trump and Xi Jinping, scheduled for November.
Support and resistance
On the 4-hour chart, the instrument was corrected to the midline of Bollinger bands, the price range narrowed. MACD histogram is in the negative area, keeping the signal to the opening of short positions.
Resistance levels: 1.3047, 1.3087, 1.3100, 1.3173.
Support levels: 1.2986, 1.2960, 1.2928.
Trading tips
Short positions can be opened from the current level with the target at 1.2960 and stop loss 1.3070.
Long positions can be opened from the level of 1.3100 with the target at 1.3170 and stop loss 1.3070.
Implementation period: 1–3 days.
Yesterday, CAD strengthened against USD due to the closing of long positions after a general weakening, which was promoted by the recognition of Donald Trump's lawyer Michael Cohen with his fault in violations during the election campaign and subsequent accusations against the president. A decrease in Retail Sales in Canada by 0.2% had almost no effect on the rate, FOMC minutes affects USD negatively in the short term.
Investors are focused on the beginning of two-day trade negotiations between the US and China in Washington and FOMC Minutes release. US-China trade talks will be the first after a series of unsuccessful May consultations. President Trump has already noted that the Chinese authorities cannot offer the US an acceptable agreement. Representatives of the Chinese government, on the contrary, are hoping for a positive result, as stated on Tuesday by the representative of the Ministry of Foreign Affairs of the People's Republic of China, Lu Kang. Market participants believe that these talks can be the first in a series of contacts, the culmination of which will be the meeting of Donald Trump and Xi Jinping, scheduled for November.
Support and resistance
On the 4-hour chart, the instrument was corrected to the midline of Bollinger bands, the price range narrowed. MACD histogram is in the negative area, keeping the signal to the opening of short positions.
Resistance levels: 1.3047, 1.3087, 1.3100, 1.3173.
Support levels: 1.2986, 1.2960, 1.2928.
Trading tips
Short positions can be opened from the current level with the target at 1.2960 and stop loss 1.3070.
Long positions can be opened from the level of 1.3100 with the target at 1.3170 and stop loss 1.3070.
Implementation period: 1–3 days.
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