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USD/JPY: upward momentum maintains 20 September 2019, 14:15

USD/JPY: upward momentum maintains 20 September 2019, 14:15 Scenario Timeframe Weekly Recommendation BUY Entry Point 1...

Sep 11, 2019

USD/CAD: the instrument is declining 11 September 2019, 09:56


Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 1.3170, 1.3190
Take Profit 1.3264, 1.3300
Stop Loss 1.3130, 1.3110
Key Levels 1.3000, 1.3058, 1.3100, 1.3132, 1.3163, 1.3200, 1.3224, 1.3264
Alternative scenario
Recommendation SELL STOP
Entry Point 1.3125
Take Profit 1.3000
Stop Loss 1.3180
Key Levels 1.3000, 1.3058, 1.3100, 1.3132, 1.3163, 1.3200, 1.3224, 1.3264
Current trend
Yesterday, the USD/CAD pair fell significantly, renewing local lows of July 31 due to ambiguous macroeconomic statistics. Thus, US NFIB Small Business Optimism Index for August fell from 104.7 to 103.1 points. The Redbook Retail Sales Index for the week of September 6 fell by 0.4% MoM after falling by 1.0% MoM for the previous period. JOLTs Job Openings for July decreased from 7.248 to 7.217 million with a forecast of growth to 7.311 million.
In turn, the Canadian statistics came out significantly better than the forecasts. Housing Starts index for August increased from 222.5K to 226.6K YoY, while investors expected a decrease to 215.0K YoY. Building Permits for July rose by 3.0% MoM after a decrease of 3.1% MoM last month. Analysts had forecast growth of only 2.3% MoM.
Support and resistance
On the daily chart, Bollinger bands are steadily declining. The price range is expanding from below but not as fast as the “bearish” dynamic develops, which indicates the risks of corrective growth. The MACD indicator falls, keeping a strong sell signal (the histogram is below the signal line). Stochastic reversed horizontally, reaching its lows ​​and reflecting that USD is oversold in the ultra-short term.
Corrective growth is possible at the end of the current trading week.
Resistance levels: 1.3163, 1.3200, 1.3224, 1.3264.
Support levels: 1.3132, 1.3100, 1.3058, 1.3000.


Trading tips
Long positions can be opened after a rebound from 1.3132 and a breakout of 1.3163 or 1.3183 with the target at 1.3264 or 1.3300. Stop loss – 1.3130–1.3110.
Short positions can be opened after the breakdown of 1.3132 with the target at 1.3000. Stop loss – 1.3180.
Implementation period: 2–3 days.

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