Current trend
The USD/CAD pair has been falling for the fourth week in a row.
Last Friday the instrument lost around 80 points after the negative US employment market publications: in December Nonfarm Payroll indicator reached 148K, which was worse than expected by 42K. US Labor Force Participation Rate stayed on the same level of 62.7%, while experts suggested the growth by 0.1%. Meanwhile, Canadian employment market data exceeded the forecasts, and the Unemployment rate unexpectedly decreased by 0.2%.
Concerning long-term growth of Canadian economy and strengthening of oil, the fall of the pair to the area of 1.2300–1.2270 is expected.
Today Bank of Canada Business Outlook Survey release is expected at 17:30 (GMT+2). Concerning the growth of consumer confidence and Canadian economy’s success in 2017, the publication will make the pair fall further. Also, US Consumer Credit Change release is worth traders’ attention today at 22:00 (GMT+2).
Support and resistance.
On the 4-hour chart, the correction of the downward movement is seen. Key support level is 1.2355, the breakdown of which will give a strong sell signal.
Bollinger Bands are pointed downwards. The price range has significantly widened, which confirms the development of the downward trend. MACD histogram is in the negative zone, keeping strong sell signal. Stochastic is in the correction near the border of the overbought area and do not give a clear signal.
Resistance levels: 1.2435, 1.2460, 1.2490, 1.2555, 1.2595, 1.2660, 1.2705.
Support levels: 1.2265, 1.2320, 1.2355, 1.2375, 1.2400.
Trading tips
Short positions can be opened at the current level with the targets at 1.2315, 1.2300 and stop loss at 1.2435. Implementation period: 1 –2 days.
Long positions can be opened at the level of 1.2450 with the targets at 1.2500, 1.2530 and stop loss 1.2425. Implementation period: 1 –2 days.
US Dollar vs Canadian
Buy Sell Spread
1.24142 1.24121 21
Scenario
Timeframe Day's Range
Recommendations SELL
Entry Point 1.2400
Take Profit 1.2315, 1.2300
Stop Loss 1.2435
Support levels 1.2265, 1.2320, 1.2355, 1.2375, 1.2400, 1.2435, 1.2460, 1.2490, 1.2555, 1.2595, 1.2660, 1.2705
Alternative scenario
Recommendations BUY STOP
Entry Point 1.2450
Take Profit 1.2500, 1.2530
Stop Loss 1.2425
Support levels 1.2265, 1.2320, 1.2355, 1.2375, 1.2400, 1.2435, 1.2460, 1.2490, 1.2555, 1.2595, 1.2660, 1.2705
The USD/CAD pair has been falling for the fourth week in a row.
Last Friday the instrument lost around 80 points after the negative US employment market publications: in December Nonfarm Payroll indicator reached 148K, which was worse than expected by 42K. US Labor Force Participation Rate stayed on the same level of 62.7%, while experts suggested the growth by 0.1%. Meanwhile, Canadian employment market data exceeded the forecasts, and the Unemployment rate unexpectedly decreased by 0.2%.
Concerning long-term growth of Canadian economy and strengthening of oil, the fall of the pair to the area of 1.2300–1.2270 is expected.
Today Bank of Canada Business Outlook Survey release is expected at 17:30 (GMT+2). Concerning the growth of consumer confidence and Canadian economy’s success in 2017, the publication will make the pair fall further. Also, US Consumer Credit Change release is worth traders’ attention today at 22:00 (GMT+2).
Support and resistance.
On the 4-hour chart, the correction of the downward movement is seen. Key support level is 1.2355, the breakdown of which will give a strong sell signal.
Bollinger Bands are pointed downwards. The price range has significantly widened, which confirms the development of the downward trend. MACD histogram is in the negative zone, keeping strong sell signal. Stochastic is in the correction near the border of the overbought area and do not give a clear signal.
Resistance levels: 1.2435, 1.2460, 1.2490, 1.2555, 1.2595, 1.2660, 1.2705.
Support levels: 1.2265, 1.2320, 1.2355, 1.2375, 1.2400.
Trading tips
Short positions can be opened at the current level with the targets at 1.2315, 1.2300 and stop loss at 1.2435. Implementation period: 1 –2 days.
Long positions can be opened at the level of 1.2450 with the targets at 1.2500, 1.2530 and stop loss 1.2425. Implementation period: 1 –2 days.
US Dollar vs Canadian
Buy Sell Spread
1.24142 1.24121 21
Scenario
Timeframe Day's Range
Recommendations SELL
Entry Point 1.2400
Take Profit 1.2315, 1.2300
Stop Loss 1.2435
Support levels 1.2265, 1.2320, 1.2355, 1.2375, 1.2400, 1.2435, 1.2460, 1.2490, 1.2555, 1.2595, 1.2660, 1.2705
Alternative scenario
Recommendations BUY STOP
Entry Point 1.2450
Take Profit 1.2500, 1.2530
Stop Loss 1.2425
Support levels 1.2265, 1.2320, 1.2355, 1.2375, 1.2400, 1.2435, 1.2460, 1.2490, 1.2555, 1.2595, 1.2660, 1.2705