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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

USD/CAD: the instrument is trading flat 16 May 2019, 09:45


Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 1.3455
Take Profit 1.3500, 1.3520
Stop Loss 1.3426
Key Levels 1.3340, 1.3375, 1.3401, 1.3426, 1.3449, 1.3479, 1.3500, 1.3520
Alternative scenario
Recommendation SELL STOP
Entry Point 1.3420
Take Profit 1.3375, 1.3355
Stop Loss 1.3449
Key Levels 1.3340, 1.3375, 1.3401, 1.3426, 1.3449, 1.3479, 1.3500, 1.3520
Current trend
Yesterday, USD fell against CAD, despite the fact that during the day the instrument was trading mostly upwards. The development of negative dynamics was due to the poor macroeconomic statistics from US industrial production. However, the market barely reacted to the publication of inflation data from Canada.
Thus, the April Consumer Price Index rose by 0.4% MoM, slowing down from the previous +0.7% MoM. In annual terms, the growth of inflation reached the target the level of 2.0% YoY, as analysts predicted. Core Price Index from the Bank of Canada slowed down from +0.3% MoM to +0.0% MoM and from +1.6% YoY to +1.5% YoY. Analysts had expected the annual rate to rise to +1.8% YoY.
On Thursday, investors wait for ADP Nonfarm Employment Change release and for a speech by Stephen Poloz, the head of the Bank of Canada.
Support and resistance
On the daily chart, Bollinger bands move flat. The price range is unchanged, reflecting the ambiguous nature of recent trading. The MACD falls, keeping a poor sell signal (the histogram is below the signal line). Stochastic is directed downward but tries to reverse into a horizontal plane.
It is better to wait for additional trading signals to open new positions.
Resistance levels: 1.3449, 1.3479, 1.3500, 1.3520.
Support levels: 1.3426, 1.3401, 1.3375, 1.3340.


Trading tips
Long positions can be opened after a rebound from 1.3426 and the breakout of 1.3449 with the target at 1.3500 or 1.3520.
Short positions can be opened after the breakdown of 1.3426 with the targets at 1.3375–1.3355. Stop loss is 1.3449.
Implementation period: 2–3 days.

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