USD/CAD: the pair is adjusted
04 December 2019, 08:50
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 1.3305 |
| Take Profit | 1.3347, 1.3360 |
| Stop Loss | 1.3269 |
| Key Levels | 1.3159, 1.3189, 1.3228, 1.3269, 1.3300, 1.3326, 1.3347 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.3265 |
| Take Profit | 1.3228, 1.3200 |
| Stop Loss | 1.3300 |
| Key Levels | 1.3159, 1.3189, 1.3228, 1.3269, 1.3300, 1.3326, 1.3347 |
Current trend
Today, during the Asian session, the USD/CAD pair is falling, losing about 0.05%. The instrument is developing a “bearish” impulse, formed yesterday under the influence of poor macroeconomic statistics, as well as general correctional sentiments regarding the US currency. Investors are concerned about Washington’s new import duties against Brazil and Argentina, as well as the possible delay in signing a trade agreement with China to November 2020, when the US presidential election will be held.
During the day, traders expect the publication of business activity indexes in the US services sector for November. Following the poor Manufacturing PMI data released on Monday, forecasts for the growth of the US dollar on Service PMI data are very restrained. Also, the market is focused on the monetary policy decision of the Bank of Canada with accompanying comments. It is expected that the interest rate will be maintained at the current level of 1.75%.
Support and resistance
On the daily chart, Bollinger bands grow moderately. The price range narrows, reflecting the appearance of ambiguous dynamics in the short term. MACD falls, having formed a poor sell signal (the histogram is below the signal line). Stochastic, by contrast, moderately grows and practically does not respond to the appearance of correctional dynamics.
To open new trading positions, it is better to wait until the situation is clear.
Resistance levels: 1.3300, 1.3326, 1.3347.
Support levels: 1.3269, 1.3228, 1.3189, 1.3159.
Trading tips
Long positions may be opened after a rebound from 1.3269 and a breakout of 1.3300 with the targets at 1.3347–1.3360. Stop loss – 1.3269.
Short positions may be opened after the breakdown of 1.3269 with the targets at 1.3228–1.3200. Stop loss – 1.3300.
Implementation period: 2–3 days.
Today, during the Asian session, the USD/CAD pair is falling, losing about 0.05%. The instrument is developing a “bearish” impulse, formed yesterday under the influence of poor macroeconomic statistics, as well as general correctional sentiments regarding the US currency. Investors are concerned about Washington’s new import duties against Brazil and Argentina, as well as the possible delay in signing a trade agreement with China to November 2020, when the US presidential election will be held.
During the day, traders expect the publication of business activity indexes in the US services sector for November. Following the poor Manufacturing PMI data released on Monday, forecasts for the growth of the US dollar on Service PMI data are very restrained. Also, the market is focused on the monetary policy decision of the Bank of Canada with accompanying comments. It is expected that the interest rate will be maintained at the current level of 1.75%.
Support and resistance
On the daily chart, Bollinger bands grow moderately. The price range narrows, reflecting the appearance of ambiguous dynamics in the short term. MACD falls, having formed a poor sell signal (the histogram is below the signal line). Stochastic, by contrast, moderately grows and practically does not respond to the appearance of correctional dynamics.
To open new trading positions, it is better to wait until the situation is clear.
Resistance levels: 1.3300, 1.3326, 1.3347.
Support levels: 1.3269, 1.3228, 1.3189, 1.3159.
Trading tips
Long positions may be opened after a rebound from 1.3269 and a breakout of 1.3300 with the targets at 1.3347–1.3360. Stop loss – 1.3269.
Short positions may be opened after the breakdown of 1.3269 with the targets at 1.3228–1.3200. Stop loss – 1.3300.
Implementation period: 2–3 days.
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