USD/CAD: US macro statistics restrain the “bullish” activity 04 March 2021, 09:33

USD/CAD: US macro statistics restrain the “bullish” activity

04 March 2021, 09:33

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.2705
Take Profit	1.2800
Stop Loss	1.2650
Key Levels	1.2500, 1.2540, 1.2570, 1.2600, 1.2650, 1.2700, 1.2746, 1.2800

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

Current trend

Today during the Asian session, the USD/CAD pair trades ambiguously, consolidating near the level of 1.2650.

The US dollar retains its upward momentum, formed yesterday. However, the American macroeconomic statistics slightly restrain the “bullish” activity on the instrument. In particular, investors reacted negatively to the release of the ADP Nonfarm Payrolls for February and are eagerly awaiting the publication of the final data on the US labor market at the end of the week.

The data from Canada were slightly better but did not significantly affect the instrument. Building permits for January rose sharply by 8.2% MoM after declining by 4.4% MoM for the previous period.

Support and resistance

On the daily chart, Bollinger bands are moving flat. The price range is trying to consolidate but remains wide enough for the current level of market activity. The MACD indicator is growing, maintaining a poor buy signal (the histogram is above the signal line). Stochastic, having not reached the border of the overbought area, reversed into a downward plane, responding to strong "bearish" pressure at the beginning of the week.

To open new trading positions, it is better to wait for the signals from technical indicators to be clarified.

Resistance levels: 1.2650, 1.2700, 1.2746, 1.2800.

Support levels: 1.2600, 1.2570, 1.2540, 1.2500.

Trading tips

Long positions may be opened after the breakout of the level 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 the level of 1.2600 with the target at 1.2500. Stop loss – 1.2650.