Current trend
On Thursday, the pair USD/CAD continued to fall, closing below the level of 1.2300. The reason for the price decrease was the growth in the index of business activity in the manufacturing sector of Canada: the figure was 55.9 points, exceeding the forecast of 54.8 points. The rise in oil prices also became a favorable factor for the Canadian dollar.
At the same time, in the US, data on the change in the number of applications for unemployment benefits were controversial, which did not support the USD. The number of secondary applications amounted to 1.953 million, surpassing the forecast. The number of initial applications for benefits amounted to 230K, which is 8K lower than the forecast value. The US dollar was also affected by a decline in labor productivity in the fourth quarter of 2017, the indicator fell by 0.1%, while the growth was expected to be 1%.
The main event of today will be the data on unemployment in the US and Non-Farm Payrolls (15.30 GMT+2). The expected increase in wages, combined with an increase in NFPR will be a favorable factor for USD, and the fall in the pair USD/CAD may slow down.
Support and resistance
On the 4-hour chart there is a correction of the downward movement, the pair is growing in the direction of the middle line of the "Bollinger Bands". The MACD histogram is in the negative area, keeping the signal to sell.
Support levels: 1.2255, 1.2200.
Resistance level: 1.2305, 1.2330, 1.2370, 1.2400.
Trading tips
Long positions can be opened at the level of 1.2310 with the target of 1.2370, and the stop loss at 1.2280.
Short positions will become relevant below 1.2250 with a target of 1.2200 and a stop loss at 1.2280.
Implementation period: 1-3 days.
US Dollar vs Canadian
Buy Sell Spread
1.23058 1.23031 27
Scenario
Timeframe Day's Range
Recommendations BUY STOP
Entry Point 1.2310
Take Profit 1.2370
Stop Loss 1.2280
Support levels 1.2200, 1.2255, 1.2305, 1.2330, 1.2370, 1.2400
Alternative scenario
Recommendations SELL STOP
Entry Point 1.2250
Take Profit 1.2200
Stop Loss 1.2280
Support levels 1.2200, 1.2255, 1.2305, 1.2330, 1.2370, 1.2400
On Thursday, the pair USD/CAD continued to fall, closing below the level of 1.2300. The reason for the price decrease was the growth in the index of business activity in the manufacturing sector of Canada: the figure was 55.9 points, exceeding the forecast of 54.8 points. The rise in oil prices also became a favorable factor for the Canadian dollar.
At the same time, in the US, data on the change in the number of applications for unemployment benefits were controversial, which did not support the USD. The number of secondary applications amounted to 1.953 million, surpassing the forecast. The number of initial applications for benefits amounted to 230K, which is 8K lower than the forecast value. The US dollar was also affected by a decline in labor productivity in the fourth quarter of 2017, the indicator fell by 0.1%, while the growth was expected to be 1%.
The main event of today will be the data on unemployment in the US and Non-Farm Payrolls (15.30 GMT+2). The expected increase in wages, combined with an increase in NFPR will be a favorable factor for USD, and the fall in the pair USD/CAD may slow down.
Support and resistance
On the 4-hour chart there is a correction of the downward movement, the pair is growing in the direction of the middle line of the "Bollinger Bands". The MACD histogram is in the negative area, keeping the signal to sell.
Support levels: 1.2255, 1.2200.
Resistance level: 1.2305, 1.2330, 1.2370, 1.2400.
Trading tips
Long positions can be opened at the level of 1.2310 with the target of 1.2370, and the stop loss at 1.2280.
Short positions will become relevant below 1.2250 with a target of 1.2200 and a stop loss at 1.2280.
Implementation period: 1-3 days.
US Dollar vs Canadian
Buy Sell Spread
1.23058 1.23031 27
Scenario
Timeframe Day's Range
Recommendations BUY STOP
Entry Point 1.2310
Take Profit 1.2370
Stop Loss 1.2280
Support levels 1.2200, 1.2255, 1.2305, 1.2330, 1.2370, 1.2400
Alternative scenario
Recommendations SELL STOP
Entry Point 1.2250
Take Profit 1.2200
Stop Loss 1.2280
Support levels 1.2200, 1.2255, 1.2305, 1.2330, 1.2370, 1.2400