Published On: Wed, Apr 26th, 2017

USD/CAD: general review

InstaForex

Current trend

Canadian dollar is under pressure, and the pair USD/CAD continues to grow. During yesterday’s trading session the price grew above the level of 1.3600 which was mainly due to President Trump’s statements about Canada and Mexico. In particular, he once again mentioned building a wall at the Mexican border and reconsidering the NAFTA agreement with Canada. These factors indicate that the USA may limit trade with its closest neighbours. Taking into account that the USA is the biggest economic partner of Canada this scenario must have an impact on the Canadian economy and its national currency.

CAD was also supported by the growth of oil prices: the pair dropped below 1.3600 and is currently trading at the level of 1.3570.

Support and resistance

On the H4 chart the instrument is trading between the upper and middle lines of Bollinger Bands. MACD indicator is in the positive area keeping a signal for the opening of long positions.

Support levels: 1.3540, 1.3520, 1.3470, 1.3440, 1.3410.

Resistance levels: 1.3600, 1.3630.

Trading tips

Long positions may be opened from the current level with targets at 1.3630 and stop-loss at 1.3530.

Short positions may be opened from 1.3520 with targets at 1.3470 and stop-loss at 1.3550.

The period of implementation is 1-2 days.

Forex Analysis

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