USD/CAD: Market Expectations

17 April 2019, 13:42
Yuri Papshev
0
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On Wednesday, commodity currencies strengthened against the US dollar against the backdrop of favorable statistics from China.

At 12:30 GMT Statistics Canada and the Bank of Canada will present data on foreign trade in Canada and data on inflation. Consumer prices in February rose by 1.5% (+ 1.4% in January) in annual terms and the base consumer price index rose by + 1.5%. If the data for March are worse than the previous values, then this will negatively affect the CAD. Data better than the forecast and above the previous values ​​will strengthen the Canadian dollar.

 

Despite the current decline, USD / CAD maintains a long-term positive trend, trading above key support levels of 1.3260 (EMA144), 1.3210 (EMA200 on the daily chart).

USD / CAD declined during the Asian session, breaking short-term strong support levels of 1.3350 (ЕМА200 on the 1-hour chart), 1.3340 (ЕМА200 on the 4-hour chart).

The breakdown of the local support level of 1.3300 may increase the risks of further USD / CAD decline with targets at the support levels of 1.3260, 1.3210.

The signal for the resumption of purchases will be the return of USD / CAD to the zone above the levels of 1.3340, 1.3350 with growth targets at resistance levels of 1.3450 (Fibonacci 23.6% of the downward correction to the pair's growth in the global uptrend since September 2012 and 0.9700), 1.3660 ( the highs of 2018), 1.3790 (the highs of 2017).

Support Levels: 1.3320, 1.3340, 1.3300, 1.3260, 1.3210, 1.3155, 1.3090, 1.3045

Resistance Levels: 1.3340, 1.3350, 1.3370, 1.3400, 1.3450, 1.3600, 1.3660, 1.3790

 

Trading scenarios

Sell ​​Stop 1.3290. Stop Loss 1.3340. Take-Profit 1.3245, 1.3200, 1.3155, 1.3090, 1.3045

Buy Stop 1.3340. Stop Loss 1.3290. Take-Profit 1.3370, 1.3450, 1.3600, 1.3660, 1.3790



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