USD/CAD Analysis

USD/CAD: THE INSTRUMENT CONTINUES THE “BULLISH” MOMENTUM FORMED LAST FRIDAY 26 February 2024, 09:52 Scenario Timeframe Intraday Recommendation BUY STOP Entry Point 1.3550 Take Profit 1.3650 Stop Loss 1.3500 Key Levels 1.3350, 1.3400, 1.3450, 1.3500, 1.3550, 1.3600, 1.3650, 1.3700 Alternative scenario Recommendation SELL STOP Entry Point 1.3500 Take Profit 1.3400 Stop Loss 1.3550 Key Levels 1.3350, 1.3400, 1.3450, 1.3500, 1.3550, 1.3600, 1.3650, 1.3700 Current trend During the Asian session, the USD/CAD pair moderately develops the “bullish” momentum formed on Friday and tests the level of 1.3500 for a breakout, while trading participants expect the emergence of new drivers. Today, investors will focus on statistics from the real estate market: in December, sales of new homes increased by 8.0% to 0.664M, and January forecasts suggest a more muted growth to 0.680M. On Tuesday, data on US consumer confidence for February and durable goods orders: according to preliminary estimates, the figure excluding transport in January will be adjusted from 0.5% to 0.2%. On Wednesday, Q4 personal consumption expenditures statistics will be published, thanks to which US Federal Reserve officials will be able to assess the pace of decline in inflation pressure within the country: previously, the index increased by 1.7% QoQ. On Thursday, analysts will estimate the dynamics of Canada’s Q4 gross domestic product (GDP): forecasts suggest growth of the national economy by 0.8% YoY after a decline of 1.1% earlier, and by the end of December, as before, the figure will increase by about 0.2%. Support and resistance On the daily chart, Bollinger Bands are moving flat: the price range remains virtually unchanged, remaining quite spacious for the current market activity level. The MACD indicator is trying to reverse upwards and generate a buy signal (the histogram tends to be above the signal line). Stochastic shows more active “bullish” dynamics but is quickly approaching its highs, which indicates that the instrument may become overbought soon. Resistance levels: 1.3550, 1.3600, 1.3650, 1.3700. Support levels: 1.3500, 1.3450, 1.3400, 1.3350. Trading tips Long positions may be opened after a breakout of 1.3550 with the target at 1.3650. Stop loss – 1.3500. Implementation time: 2–3 days. Short positions may be opened after a rebound from 1.3550 and a breakdown of 1.3500 with the target at 1.3400. Stop loss – 1.3550.