USD/CAD: The Pair Continues To Move In The Upward Channel
LiteForex Europe | May 22, 2017 03:27AM ET
During the current week the pair has been falling and reached the level of 1.3570 (Fibo correction 50.0%). The strengthening of CAD is explained by the increase of oil prices: Brent grew above $52, and WTI above $49 per barrel. On the other hand, political scandals in the USA lead to the weakening of USD.
Currently the price has slightly corrected and is trading around the middle line of Bolliner Bands near 1.3650. If it is broken through, the price may continue to grow to 1.3750 and 1.3815 (upper border of the upward channel). The key mark for the “bears” will be 1.3570: if it is broken through, one may expect the price to continue falling to the lower border of the upward channel 1.3455 and 1.3400.
Currently investors are waiting for the news on the extension of the agreement on the cutting of oil production that may push oil to grow and drag CAD along. Tomorrow releases from Canada include April data on consumer price index and March retail sales. Both indicators are expected to be strong and to support CAD.
Technically the price moved from the upper border of the upward channel and is aiming at the lower one (1.3400). On the other hand, Stochastic is reversing upwards near the oversold zone which is a sign of a possible upward movement to the area of May maximums (1.3750).
Support levels: 1.3570, 1.3455, 1.3400.
Resistance levels: 1.3650, 1.3750, 1.3815.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.