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    Analytical review of the currency pair USD/CAD on 11.02.2016

    USD/CAD

    Technical data of the currency pair:

    Previous closing: 1.3926;
    Daily rang: 1.3883-1.3966;
    Opening: 1.3926;
    52-week range: 1.1916-1.4692;
    Annual revenue: 10.45%;
    Change in % for the previous day: 0.43;


    Analytical review:

    • Over the past three weeks the Canadian dollar has grown by 900 points against the USD. The CAD hardly reacted to the ambiguous macro-economic US data of last week.
    • At yesterday’s press-conference Janet Yellen, the head of the US Fed, has announced that current economic conditions in the USA makes possible introduction of monetary policy tightening. Slower pace of the interest rate increase will become appropriate if future economic performance will be negative.
    • The Canadian dollar is a commodity currency and further fall in oil process will put pressure on the currency.
    • “Commitments of Traders” shows that large speculators reduced long positions by 2083 contracts. Short positions increased by 8564 contracts.
    • Attention shall be paid to this week’s news including a speech by the US Fed president Mrs Yellen (Thursday) and retail sales (Friday). The data can affect the dynamics and volatility in the market.

    Summary:

    • Since mid-January the Canadian dollar has strengthened its positions (over 900 points). US Fed executives believe that interest rate will be increased. The decline in oil prices continues to put pressure on the CAD. “COT” indicates that large speculators reduced long positions on the CAD.
    • We expect correction in the market. Long positions are recommended.

    Trading tips for the currency pair USD/CAD

    Long-term trading:
    the currency is traded near strong resistance level of 1.3970. In case of breakdown and testing of this level and respective confirmations (for example Price Action), long positions will be advisable. Risk per trade is not more than 2% of the capital. Stop-order can be placed slightly below the signal. Take profit should be placed at the levels of 1.4150, 1.4320 and 1.4550.


    Short-term trading: currently, the currency is traded between the local support and resistance levels of 1.3885 – 1.3970. After breakdown and testing of these levels we recommend to enter the market. Positions can be opened near the signal line and the nearest support/resistance levels. Stop-order can be placed slightly above/below the signal line. “Multi-tarde” is recommended for this position Take profit should be placed in parts at the levels of50%, 3a0% and 20%.



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