USD/CAD: the pair shows flat dynamics 09 March 2021, 10:51

USD/CAD: the pair shows flat dynamics

09 March 2021, 10:51

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.2705
Take Profit	1.2800
Stop Loss	1.2650
Key Levels	1.2540, 1.2570, 1.2600, 1.2650, 1.2700, 1.2746, 1.2800, 1.2850

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.2595
Take Profit	1.2500
Stop Loss	1.2650
Key Levels	1.2540, 1.2570, 1.2600, 1.2650, 1.2700, 1.2746, 1.2800, 1.2850

Current trend

Today, during the Asian session, the USD/CAD pair slightly decreases, consolidating near the level of 1.2650, not far from which it has been trading recently.

USD is in demand after the publication of a strong report on the US labor market, as well as in anticipation of the approval of a program to support the national economy of $1.9 trillion. The bill passed a vote in the Senate, having undergone several amendments. Now it will be returned to the House of Representatives, after which he will go for approval of US President Joe Biden, who hopes to complete the process this week.

On Tuesday, investors are focused on the minor US macroeconomic statistics on the dynamics of business optimism from the NFIB and the volume of retail sales from Redbook for the week of March 5. The main publications will take place tomorrow when the February statistics on consumer inflation are released in the US, and the Bank of Canada will publish its decision on the interest rate.

Support and resistance

On the daily chart, Bollinger bands are moving flat. The price range narrows, reflecting the ambiguous nature of trading in the short term. MACD grows, maintaining a poor buy signal (the histogram is above the signal line). Stochastic reversed into a horizontal plane after a short decline last week, reflecting the approximate balance of power in the ultra-short term.

Resistance levels: 1.2700, 1.2746, 1.2800, 1.2850.

Support levels: 1.2650, 1.2600, 1.2570, 1.2540.

Trading tips

Long positions may be opened after the breakout of 1.2700 with the target at 1.2800. Stop loss – 1.2650. Implementation period: 2–3 days.

Short positions may be opened after the breakdown of 1.2600 with the target at 1.2500. Stop loss – 1.2650.