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USD/CAD: technical analysis 16 July 2019, 11:19

USD/CAD: technical analysis 16 July 2019, 11:19 Scenario Timeframe Intraday Recommendation SELL STOP Entry Point 1.303...

May 16, 2019

EUR/USD: general review 16 May 2019, 14:01


Scenario
Timeframe Intraday
Recommendation SELL
Entry Point 1.1206
Take Profit 1.1169, 1.1108
Stop Loss 1.1240
Key Levels 1.1108, 1.1169, 1.1230, 1.1290, 1.1352
Alternative scenario
Recommendation BUY STOP
Entry Point 1.1235
Take Profit 1.1290, 1.1352
Stop Loss 1.1205
Key Levels 1.1108, 1.1169, 1.1230, 1.1290, 1.1352
Current trend
This week, the instrument corrected down amid the US-China trade conflict.
Today, the price is attempting to grow after the publication of weak data on US retail sales (a decrease of 0.2%) and industrial output (a decrease of 0.5%). However, the upward correction potential seems limited, because the fundamental picture remains unfavorable. Yesterday, the US Department of Commerce announced that it will blacklist Huawei because of the threat to national security. The company's access to the US market will be limited; US companies will need special permission to sell Huawei products. Experts believe that this decision is another way of forcing China to sign a trade deal.
Today, the market is waiting for the publication of April data on the US construction market. Building Permits is expected to increase from 1.288 to 1.290 million, new houses will increase from 1.139 to 1.205 million. The implementation of the forecast can strengthen USD.
Support and resistance
Now the price is at 1.1200 near the midline of Bollinger Bands and may continue to decline to 1.1169 (Murrey [-1/8]) and 1.1108 (Murrey [-2/8]). 1.1230 (Murrey [0/8]) is the key for the "bulls". If the price consolidates above it, growth may continue to the upper line of the ascending channel at 1.1290 (Murrey [1/8]) and, possibly, to 1.1352 (Murrey [2/8]).
Technical indicators show a decline: Bollinger Bands are pointing downwards, Stochastic is directed upwards, MACD histogram is stable in the negative zone.
Support levels: 1.1169, 1.1108.
Resistance levels: 1.1230, 1.1290, 1.1352.

Trading tips
Short positions may be opened from the current level with targets at 1.1169, 1.1108 and stop loss at 1.1240.
Long positions may be opened if the price consolidates above 1.1230 with targets at 1.1290, 1.1352 and stop loss at 1.1205.
Implementation period: 3-4 days.

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