USD/CAD: statistics data support the Canadian dollar
15 March 2021, 10:36
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL STOP |
| Entry Point | 1.2452 |
| Take Profit | 1.2320 |
| Stop Loss | 1.2520 |
| Key Levels | 1.2320, 1.2452, 1.2525, 1.2731 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 1.2525 |
| Take Profit | 1.2731 |
| Stop Loss | 1.2450 |
| Key Levels | 1.2320, 1.2452, 1.2525, 1.2731 |
Current trend
The USD/CAD pair moves within a downward trend, trading at the level of 1.2482. Volatility eased significantly and the US dollar index dropped below 92 points to 91.830. Investors and traders are awaiting how the market will react to the adoption of the $1.9T economic support package signed by US President Joe Biden in the pandemic.
Canadian investors are focused on Friday's data on the national labor market, indicating a significant pace of improvement in the situation. For February, unemployment fell to 8.2%, while for January it was 9.4%, the lowest level since March last year when unemployment was 5.6%. The number of employed, on the contrary, increased by 259K, after decreasing by 212.8K for January. Despite this growth, the share of the economically active population has not changed and amounted to 64.7%, and this is still too far from the pre-pandemic values of 65.5%.
Support and resistance
Locally, the price has reached the global low of mid-February and is ready to break it. Technical indicators are in the sell state. Fast EMAs on the Alligator indicator move significantly below the signal one, and the histogram of the AO oscillator is trading deep in the sell zone.
Resistance levels: 1.2525, 1.2731.
Support levels: 1.2452, 1.2320.
Trading tips
After decline or consolidation below the global minimum of 1.2452, sell positions with the target at 1.2320 are relevant. Stop loss is 1.2520. Implementation period: 5 days.
After reversal and growth or consolidation above the local resistance level of 1.2525, buy positions with the target at 1.2731 are relevant. Stop loss is 1.2450.
No comments:
Write comments