USD/CAD: instrument consolidates

Current trend

Today, during the Asian session, the USD/CAD pair is growing slightly, being corrected after yesterday’s active decline, as a result of which the dollar retreated from its local highs from December 11, 2019. Yesterday, USD was under pressure of poor US Durable Goods Orders data. So, orders for capital goods excluding the defense and aviation sectors for December fell by 0.9% after rising by 0.1% for November. Analysts had expected zero momentum. Orders for durable goods excluding transport for the same period decreased by 0.1% after a decrease of 0.4% but experts expected positive dynamics of +0.2%.

Support and resistance

On the daily chart, Bollinger bands are growing steadily. The price range is expanding, letting the "bulls" renew local highs. The MACD indicator is growing, maintaining a relatively strong buy signal (the histogram is above the signal line). Stochastic, approaching its highs gradually reverses downwards, indicating the potential for the development of a corrective decline in the ultra-short term.

It is better to wait until the market situation is clarified before opening new trading positions.

Resistance levels: 1.3180, 1.3204, 1.3221.

Support levels: 1.3153, 1.3137, 1.3103, 1.3078.

Trading tips

Long positions may be opened after a rebound from the level of 1.3153 and a breakout of the level of 1.3180 with the targets at 1.3221–1.3250. Stop loss – 1.3153. Implementation period: 1–2 days.

Short positions may be opened after the breakdown of levels 1.3153–1.3137 with the target at 1.3103 or 1.3078. Stop loss – 1.3170–1.3180.

Implementation period: 2–3 days.

Scenario

  • Timeframe

    Intraday

  • Recommendation

    BUY STOP

  • Entry Point

    1.3185

  • Take Profit

    1.3221, 1.3250

  • Stop Loss

    1.3153

  • Key Levels

    1.3078, 1.3103, 1.3137, 1.3153, 1.3180, 1.3204, 1.3221

Alternative scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL STOP

  • Entry Point

    1.3150, 1.3135

  • Take Profit

    1.3103, 1.3078

  • Stop Loss

    1.3170, 1.3180

  • Key Levels

    1.3078, 1.3103, 1.3137, 1.3153, 1.3180, 1.3204, 1.3221

Tifia trading account

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USD/CAD analysis for today.