Current trend
Against contradictory statistics from Canada and the United States, the USD/CAD pair remains in the range of 1.3539–1.3434.
On the one hand, buyers are guided by a decrease in wholesale sales in Canada in January from 0.3% to –0.6%, and sellers are supported by negative news on the dynamics of new home sales in the United States, which decreased from 7.2% to 1.5%, below the forecast of 3.0%. In absolute terms, the figure was 661.0K compared to expectations of 680.0K.
From the technical analysis perspective, the trading instrument is moving in a long-term downward trend: in February, the price corrected to 1.3539 and unsuccessfully tested it. Now, the quotes are trying to continue their decline with the target at the nearest support level of 1.3434. After consolidating below, the downward movement will intensify to 1.3380. If the resistance level of 1.3539 is broken, long positions with the target at 1.3607 are relevant.
The medium-term trend is upwards, and within it, the asset reached zone 2 (1.3552–1.3533) and began to correct, returning to this area again last week. Short positions may be opened with the target around 1.3404–1.3386, after testing which it is better to use the Price Action pattern to form buy positions with the target in zone 2, after the breakdown of which, the next target will be zone 3 (1.3738–1.3719).
Support and resistance
Resistance levels: 1.3539, 1.3607.
Support levels: 1.3434, 1.3380, 1.3316.
Trading tips
Short positions may be opened from 1.3539, with the target at 1.3434 and stop loss around 1.3570. Implementation time: 9–12 days.
Long positions may be opened above 1.3570, with the target at 1.3670 and stop loss around 1.3539.
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