USD/CAD: general review
Current trend
The pair continues growing amid falling oil prices. Despite recent statements from a number of the largest exporting countries about upcoming reduction in the production levels, this week the price of Brent crude oil resumed its fall, representing doubts of market participants of the possibility of the production cut from the biggest exporters. In addition, yesterday’s report from the American Petroleum Institute showed a substantial growth in oil reserves in the US that increased pressure on oil prices.
Today attention needs to be paid to data on the EIA Crude Oil Stocks change in the US. A forecasted increase in reserves of 0.65 million barrels could provide additional support to the pair.
Support and resistance
On the daily chart, the price is testing the level of 1.3305. Bollinger Bands is directed up while the price range is widening. MACD histogram is in the positive zone and its volumes are growing. Stochastic is about to enter the overbought zone.
The indicators recommend long positions.
Support levels: 1.3238, 1.3205, 1.3181, 1.3158, 1.3138, 1.3107, 1.3080.
Resistance levels: 1.3259, 1.3280, 1.3304, 1.3223.
Trading tips
Long positions can be opened from the level of 1.3235 with targets at 1.3305, 1.3325 and stop-loss at 1.3205. Validity – 1-2 days.
Short positions can be opened from the level of 1.3200 with targets at 1.3140, 1.3110 and stop-loss at 1.3245. Validity – 1-2 days.
