Technical Analysis USDCAD : 2015-01-20


Manufacturing sales

Today at 14:30 CET Manufacturing sales will be released in Canada. The indicator is published monthly by Statistics Canada. It’s a leading indicator of consumer spending and employment. For this reason the statistics is important for investors who expect the potential dividends from long-term investment. We assume that the indicator release may result in increased volatility of the Canadian dollar against other liquid currencies.

technical-analysis-charts-usd-cad

In order to diversify investment possibilities, today we consider USD/CAD on the D1 chart. The price crossed the strong weekly resistance line and formed a new daily uptrend channel. It was accompanied by the breakout of the upper triangle side, which has a bullish bias. ParabolicSAR historical values move along the trend line, increasing its strength. RSI-Bars oscillator also confirms the trend. There is no contradiction on the part of DonchianChannel (13). The price is moving along the upper border, constantly updating the channel peaks. Bulls gained a massive foothold. We deem the next bullish momentum would occur after the fractal resistance crossing at 1.20515. This mark can be used for placing a pending buy order. Conservative investors should wait for the oscillator breakout at 85.0433% to confirm the price breakout. Stop Loss is to be placed below the last support at 1.17792, which is confirmed by the trend line and Parabolic historical values. After order opening, Stop Loss is to be moved after Parabolic values near the next fractal low. Thus, we are changing the probable profit/loss ratio to the breakeven point.

USD/CAD

At the moment, the volume of CAD futures traded on the Chicago Mercantile Exchange doesn’t confirm the trend: the level of 120 000 contracts has been outperformed. The most cautious investors are recommended to wait for the breakout of this level to verify the bullish market. You can monitor the trading volumes by clicking here.

PositionBuy
Buy stopabove 1.20515
Stop lossbelow 1.17792

Dear traders. For the detailed report of the strategy based on analytical issues of technical analysis click here.


Note

This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Call