USD/CAD: general review
In early January, USD fell sharply against the Canadian dollar, losing more than 450 points in the first 10 days and reaching the level of 1.3180.
Then the pair slightly adjusted upwards, after which the next downward wave was formed. Currently, the instrument is moving to a wide lateral consolidation: at the end of January and early February, the pair first dropped by 250 points, and then rose by the same 250 points. The main catalyst for this is the rapid growth of USD amid accelerating demand and the subsequent fall on weak labor market data and production orders.
Support and resistance
This week, one should focus on inflation data, retail sales, industrial production, and major indices. The main indicator for the US dollar is inflationary pressure, the growth or decrease of which directly affects the decision on interest rates and changes in monetary policy. A new downward wave with the target at 1.3100 is expected, after which the pair can recover to 1.3215, 1.3255.
Indicators confirm the possible transition to lateral consolidation: MACD indicates a decline in the volume of short positions, and Bollinger Bands are arranged horizontally.
Support levels: 1.3215, 1.3180, 1.3150, 1.3130, 1.3100, 1.3000, 1.2975, 1.2900.
Resistance levels: 1.3300, 1.3355, 1.3375, 1.3390, 1.3450, 1.3530, 1.3595, 1.3665.
Short positions may be opened from the current level with the target at 1.3100 and stop loss at 1.3330.
|Key Levels||1.2900, 1.2975, 1.3000, 1.3100, 1.3130, 1.3150, 1.3180, 1.3215, 1.3300, 1.3355, 1.3375, 1.3390, 1.3450, 1.3530, 1.3595, 1.3665|
Risk Warning. Trading on financial markets carries risks. Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Click here for our full Risk Disclosure.
Our company’s service is not provided to the citizens (residents) United States of America, Canada, Israel, Belgium, Japan and the Republic of Vanuatu and citizens of any state or country where the service is not made available.
This site contains basic information that is relevant to the following companies:
- Tifia Markets Limited is licensed as a "Dealer in Securities" (registration number 40209) by the "Ministry of Finance and Economic Management" and regulated in accordance with the "Dealers in Securities (Licensing) Act [CAP.70]" of the Republic of Vanuatu. The Company address: Govant Building, BP 1276 Port Vila, The Republic of Vanuatu.