As of writing, USD/CAD was trading near the level of 1.3770, close to the local high (since the end of March this year) at 1.3784, reached at the beginning of today’s European trading session.
Moreover, the pair is developing an upward trend, trading in the medium-term zone above the support level at 1.3425 (200 EMA on the daily chart), the long-term zone above the support level at 1.3135 (200 EMA on the weekly chart), and the global zone above the support level at 1.2700 (200 EMA on the monthly chart), all of which are bullish markets. It is also receiving support from fundamental factors.
There is an expected increase in volatility in the quotes of the Canadian and American dollars at 12:30 and 14:00 GMT, which should, in turn, increase the volatility in the USD/CAD pair.
In the event of positive macroeconomic statistics for USD and negative for CAD, a breakout of today’s high at 1.3784 will be a signal to increase long positions in USD/CAD with growth targets at local resistance levels of 1.3810 and 1.3860.
In an alternative scenario, USD/CAD may resume its decline. The first signal for selling will be a break of today’s low at 1.3710 and the local support level at 1.3700, with confirmation through a break below the important short-term support level at 1.3615 (200 EMA on the 1-hour chart).
Further development of this scenario, with a break of key support levels at 1.3450 (144 EMA on the daily chart and the 23.6% Fibonacci level correction in the upward trend from the level of 0.9700 to 1.4600, reached in June 2016), 1.3425 (200 EMA on the daily chart), and 1.3405 (50 EMA on the weekly chart), will return USD/CAD to the medium-term bearish market zone. A break of support levels at 1.3195 (144 EMA on the weekly chart) and 1.3135 (200 EMA on the weekly chart) will bring the pair back into the long-term bearish market zone, making short positions preferable.
As of writing, USD/CAD was trading near the level of 1.3770, close to the local high (since the end of March this year) at 1.3784, reached at the beginning of today’s European trading session.
Moreover, the pair is developing an upward trend, trading in the medium-term zone above the support level at 1.3425 (200 EMA on the daily chart), the long-term zone above the support level at 1.3135 (200 EMA on the weekly chart), and the global zone above the support level at 1.2700 (200 EMA on the monthly chart), all of which are bullish markets. It is also receiving support from fundamental factors.
There is an expected increase in volatility in the quotes of the Canadian and American dollars at 12:30 and 14:00 GMT, which should, in turn, increase the volatility in the USD/CAD pair.
In the event of positive macroeconomic statistics for USD and negative for CAD, a breakout of today’s high at 1.3784 will be a signal to increase long positions in USD/CAD with growth targets at local resistance levels of 1.3810 and 1.3860.
In an alternative scenario, USD/CAD may resume its decline. The first signal for selling will be a break of today’s low at 1.3710 and the local support level at 1.3700, with confirmation through a break below the important short-term support level at 1.3615 (200 EMA on the 1-hour chart).
Further development of this scenario, with a break of key support levels at 1.3450 (144 EMA on the daily chart and the 23.6% Fibonacci level correction in the upward trend from the level of 0.9700 to 1.4600, reached in June 2016), 1.3425 (200 EMA on the daily chart), and 1.3405 (50 EMA on the weekly chart), will return USD/CAD to the medium-term bearish market zone. A break of support levels at 1.3195 (144 EMA on the weekly chart) and 1.3135 (200 EMA on the weekly chart) will bring the pair back into the long-term bearish market zone, making short positions preferable.
Support levels: 1.3710, 1.3700, 1.3670, 1.3615, 1.3600, 1.3537, 1.3515, 1.3500, 1.3450, 1.3425, 1.3405
Resistance levels: 1.3780, 1.3810, 1.3860, 1.3900, 1.3970, 1.4000
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: