Current trend
The USD/CAD pair has updated yesterday's high and is trading at 1.3720 as a result of the weakening of the Canadian dollar.
The negative dynamics of the currency is developing against the background of the Bank of Canada's officials maintaining the interest rate at 5.00%. At a subsequent press conference, the head of the regulator, Tiff Macklem, said that a reduction in the cost of borrowing would be possible in June, and this decision would depend only on incoming macroeconomic data.
The long-term trend is upward: yesterday the price overcame the resistance level of 1.3670 and headed towards 1.3764, after which a breakout is possible to rise to the resistance level of 1.3830. If the 1.3764 mark is held, a correction to the area of 1.3670 and 1.3607 is likely. The RSI (21) indicator, indicating overbought or oversold assets, is located in the neutral zone, allowing one to consider long positions for the trend.
Within the medium-term uptrend, the quotes reached zone 3 (1.3738–1.3719), after the breakdown of which an increase to zone 4 (1.3929-1.3910) is possible. In the case of a test of the key trend support area of 1.3543–1.3524, one may open long positions with the target at the current week's maximum of 1.3725.
Support and resistance
Resistance levels: 1.3764, 1.3830.
Support levels: 1.3670, 1.3607.
Trading tips
Long positions can be opened from the 1.3670 mark with the target of 1.3764 and stop-loss around 1.3640. Implementation time: 9–12 days.
Short positions can be opened below the level of 1.3640 with the target of 1.3555 and stop-loss around 1.3680.
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