USD/CAD: USD is recovering 12 February 2021, 09:57

 

USD/CAD: USD is recovering

12 February 2021, 09:57

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.2740
Take Profit	1.2800
Stop Loss	1.2700
Key Levels	1.2589, 1.2622, 1.2664, 1.2700, 1.2738, 1.2770, 1.2800, 1.2850

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.2695
Take Profit	1.2622
Stop Loss	1.2738
Key Levels	1.2589, 1.2622, 1.2664, 1.2700, 1.2738, 1.2770, 1.2800, 1.2850

Current trend

USD is showing moderate growth today against CAD, retreating from local lows since January 22, updated the day before. Some support for the instrument is provided by technical factors, as well as statistics from the US on the dynamics of jobless claims. Initial Jobless Claims fell from 812K to 793K, breaking the psychological level of 800K. At the same time, analysts expected a decrease in the indicator to 757K. Continuing Jobless Claims for the week ending January 29 fell from 4.69M to 4.545M, which also turned out to be slightly worse than market expectations at 4.49M.

Today, investors are awaiting a speech by the Fed representative John Williams, who is also the head of the New York Federal Reserve Bank. In addition, traders will pay attention to Michigan Consumer Sentiment Index publication for February. Canada will publish Wholesale Sales data for December.

Support and resistance

In the D1 chart, Bollinger Bands are reversing horizontally. The price range is changing slightly, but remains rather spacious for the current level of activity in the market. MACD has reversed to growth and is about to form a new buy signal (the histogram should be located above the signal line). Stochastic is showing more active dynamics and is already signaling in favor of the development of corrective growth in the nearest future.

Resistance levels: 1.2738, 1.2770, 1.2800, 1.2850.

Support levels: 1.2700, 1.2664, 1.2622, 1.2589.

Trading tips

To open long positions, one can rely on the breakout of 1.2738. Take-profit – 1.2800. Stop-loss – 1.2700. Implementation time: 1-2 days.

A rebound from 1.2738 as from resistance, followed by a breakdown of 1.2700 may become a signal for new sales with the target at 1.2622. Stop-loss – 1.2738.