LiteForex - Analytics

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    Analytical review of the currency pair USD/CAD on 18.03.2016

    USD/CAD

    Technical data of the currency pair:

    Previous closing: 1.2978;
    Daily range: 1.2969-1.3011;
    Opening: 1.2978;
    52- week range: 1.1916-1.4692;
    Annual revenue: 3.41%;
    Change in % for the previous day: -0.83.

    Analytical review:

    • Over the last two sessions the CAD has grown by over 350 points against the USD.
    • On Wednesday the US Fed left in interest rate at the previous level of 0.25-0.50%, the US Fed might continue further tightening of the monetary policy amid steady rise of the employment rate in the country; Experts of the US Fed said that uncertainty in the global economy creates additional risks to the US economy.
    • The US Fed announces new macro-economic forecast of the country, which stipulates the 4 times increase of the interest rate within this year.
    • “Commitments of Traders” shows that over 60% of the large speculators believe in strength of the Canadian currency. According to COT, 113398 contracts have been opened for the long positions against 85245 contracts for the short positions.
    • The Canadian statistics scheduled for the release today will include core indices of consumer price and retail sales. This data can change movement direction in the Canadian dollar.

    Summary:

    • During yesterday’s trading session the CAD grew by 0.83% against the USD. Increased volatility in the market and ambiguous situation in the global economy have strong impact on the currency movement. According to “COT” large speculators believe in strength of the Canadian currency.
    • In the near future the CAD will rise against the USD. We recommend to open short positions.

    Trading tips for the currency pair USD/CAD

    Medium-term trading:
    the currency has broken out the local support level of 1.3085. In case of maintaining of the zones of 1.3085-1.3165; 1.3165-1.3235 and respective confirmation (such as pattern Price Action), we recommend to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.3040, 1.2970 and 1.2930 with the use of trailing stop.


    Short-term trading: at the moment, the CAD is traded in the range of 1.2965-1.3045. We recommend to enter the market after breaking out and testing of these zones. The positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.



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