On Wednesday (14:00 GMT) the Bank of Canada decision on rates will be published. It is likely that in the face of the unresolved issue on NAFTA, the Bank of Canada is unlikely to decide to change its monetary policy. The interest rate is likely to remain at 1.50%.
On Tuesday, USD / CAD broke the upper limit of the downward channel on the daily chart, thus breaking the medium-term negative dynamics.
Indicators OsMA and Stochastics on the 4-hour, daily, weekly charts went to the side of buyers.
Above the short-term support level 1.3055 (EMA200 on the 4-hour chart, EMA50 on the daily chart) long positions are preferred.
In general, long-term upward dynamics persist, and USD / CAD is rising in the upward channel on the weekly chart, the upper limit of which is near the resistance level 1.3600 (highs of November, December 2016).
The support level of 1.2930 (200-period moving average on the daily chart) is the key, long-term positive dynamics remain above it.
Long positions are relevant.
The first signal for the development of an alternative scenario may be a decline to a zone below the 1.3112 mark, through which the upper limit of the descending channel on the daily chart passes. The breakdown of the support level 1.3055 will confirm this scenario.
However, only the breakdown of the support level 1.2625 (EMA200 on the weekly chart) will signal a final break of the bullish USD / CAD trend.
*)An advanced fundamental analysis is available on the Tifia Forex Broker website at tifia.com/analytics
Support levels: 1.3112, 1.3100, 1.3055,
1.2970, 1.2930, 1.2900
Resistance levels: 1.3175, 1.3200, 1.3285, 1.3380, 1.3450
Trading Scenarios
Sell Stop 1.3080. Stop-Loss 1.3160. Take-Profit 1.3055, 1.2970, 1.2930, 1.2900
Buy Stop 1.3160. Stop-Loss 1.3080. Take-Profit 1.3175, 1.3200, 1.3285, 1.3380, 1.3450
*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com
