USD/CAD: general analysis
21 January 2019, 13:36
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY |
| Entry Point | 1.3293 |
| Take Profit | 1.3665 |
| Stop Loss | 1.2930 |
| Key Levels | 1.2785, 1.2850, 1.2930, 1.2970, 1.3000, 1.3050, 1.3130, 1.3170, 1.3225, 1.3290, 1.3355, 1.3375, 1.3450, 1.3530, 1.3595 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY LIMIT |
| Entry Point | 1.3170, 1.3130 |
| Take Profit | 1.3665 |
| Stop Loss | 1.2930 |
| Key Levels | 1.2785, 1.2850, 1.2930, 1.2970, 1.3000, 1.3050, 1.3130, 1.3170, 1.3225, 1.3290, 1.3355, 1.3375, 1.3450, 1.3530, 1.3595 |
Current trend
At the end of last year, the USD/CAD pair has grown but in early January, it decreased rapidly. However, the instrument is still trading within the long-term upward channel, and the price reversed downwards from the upper border of this range at 1.3665. In just a few days, CAD regained back more than 500 points against USD. After that, the course consolidated in a narrow sideways consolidation.
The main catalyst for the downward trend was the decline in demand for USD after the publication of ambiguous releases in the main sectors of the US economy, as well as active sales at the peak and key resistance levels.
This week, special attention should be paid to US data on the labor market and major indices. In Canada, statistics on Retail Sales will be published.
Support and resistance
In the medium term, the pair is expected to return to growth soon, which will begin either from the current levels or after a short-term decline to the levels of 1.3170, 1.3130. In the future, the demand for the US dollar will increase, which will ensure its growth against the weakening CAD.
The pair remains within the ascending range, technical indicators continue to give a signal for growth, MACD keeps high volumes of long positions, and Bollinger bands are directed upwards.
Resistance levels: 1.3225, 1.3290, 1.3355, 1.3375, 1.3450, 1.3530, 1.3595.
Support levels: 1.3170, 1.3130, 1.3050, 1.3000, 1.2970, 1.2930, 1.2850, 1.2785.
Trading tips
It is relevant to increase volumes of long positions from the current level and open pending long positions from 1.3170, 1.3130 levels with the target at 1.3665 and stop loss 1.2930.
At the end of last year, the USD/CAD pair has grown but in early January, it decreased rapidly. However, the instrument is still trading within the long-term upward channel, and the price reversed downwards from the upper border of this range at 1.3665. In just a few days, CAD regained back more than 500 points against USD. After that, the course consolidated in a narrow sideways consolidation.
The main catalyst for the downward trend was the decline in demand for USD after the publication of ambiguous releases in the main sectors of the US economy, as well as active sales at the peak and key resistance levels.
This week, special attention should be paid to US data on the labor market and major indices. In Canada, statistics on Retail Sales will be published.
Support and resistance
In the medium term, the pair is expected to return to growth soon, which will begin either from the current levels or after a short-term decline to the levels of 1.3170, 1.3130. In the future, the demand for the US dollar will increase, which will ensure its growth against the weakening CAD.
The pair remains within the ascending range, technical indicators continue to give a signal for growth, MACD keeps high volumes of long positions, and Bollinger bands are directed upwards.
Resistance levels: 1.3225, 1.3290, 1.3355, 1.3375, 1.3450, 1.3530, 1.3595.
Support levels: 1.3170, 1.3130, 1.3050, 1.3000, 1.2970, 1.2930, 1.2850, 1.2785.
Trading tips
It is relevant to increase volumes of long positions from the current level and open pending long positions from 1.3170, 1.3130 levels with the target at 1.3665 and stop loss 1.2930.
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