Re: Forex Analysis by LiteForex
USD/CAD: general analysis
Current trend
On Tuesday the US Dollar strengthened against the Canadian currency. Concerns about Brexit’s impact on the global economy result in higher demand for the US currency. Moreover, the USD/CAD pair gained support from a decline in oil prices.
Today dynamics in the pair might be influenced by statistics on trade balance, due both in the US and in Canada. Attention also needs to be paid to US ISM Non-Manufacturing PMI, as an expected index growth from 52.9 to 53.3 points might provide moderate support for the American currency.
Support and resistance
On the 4-hour chart, the price is trying to consolidate above the upper MA of Bollinger Bands. The indicator is directed horizontally while the price range is widening that suggests the current trend is likely to continue. MACD histogram is in the positive zone, and its volumes are growing. Stochastic is about to leave the overbought zone.
Long positions seem preferable, but it is recommended to wait for clearer trading signals before placing new orders.
Support levels: 1.2978, 1.2950, 1.2920, 1.2899, 1.2874, 1.2857, 1.2820.
Resistance levels: 1.3016, 1.3046, 1.3077, 1.3095.
Trading tips
Long positions can be opened from the current level with targets at 1.3046, 1.3077 and stop-loss at 1.2978. Validity – 1-2 days.
Short positions can be opened after the level of 1.2978 is broken down with the target at 1.2950 and stop-loss at 1.3046. Validity – 1-2 days.