Technical Analytics Report

USD/CAD: Fundamental Analysis Report 19 March 2021

USD/CAD: Fundamental Analysis Report 19 March 2021

 

Current Trend : The Dollar Is Consolidating 

Today, during the Asian session, the USD/CAD pair is showing flat dynamics, consolidating near the level of 1.2500.

On Thursday, the US dollar was actively strengthening, responding to the growth of US Treasury bond yields. Yesterday, the 10-year notes renewed 13-month highs, rising above 1.70%, supported by the generally positive sentiment regarding the fundamental outlook for the US economy. Earlier, the currency declined after the publication of the minutes of the US Feds meeting, which reflected the reluctance of the regulator to respond to the surge in yields and also reduced the degree of speculation on a possible increase in interest rates.

Yesterday, the Canadian currency was negatively impacted by the ADP employment report for Canada. For February, the figure fell by 100.8K after falling by 65.8K for the previous period.

Support and Resistance

On the daily chart, Bollinger bands are actively declining. The price range is narrowing, indicating ambiguous trading dynamics in the short term. The MACD indicator reversed upwards, forming a new buy signal (the histogram is above the signal line). Stochastic maintains a confident upward trend, signaling in favor of further development of the “bullish” dynamics in the ultra-short term.

It is better to keep current long positions and open new ones in the short-term and/or super-short term until the signals from technical indicators are clarified.

 Resistance levels: 1.2500, 1.2540, 1.2570, 1.2600.

Support levels: 1.2439, 1.2400, 1.2353, 1.2300.

 Trading Tips

 Long positions may be opened after the breakout of 1.2500 with the target at 1.2600. Stop loss – 1.2450. Implementation period: 2–3 days.

Short positions may be opened after the rebound from 1.2500 and the breakdown of 1.2450 with the target at 1.2353. Stop loss – 1.2500.

 Scenario

 Timeframe: Intraday

 Recommendation: Buy Stop

 Entry Point: 1.2505

 Take Profit: 1.2600

 Stop Loss: 1.2450

 Key Levels: 1.2300, 1.2353, 1.2400, 1.2439, 1.2500, 1.2540, 1.2570, 1.2600

 Alternative Scenario

 Timeframe: Intraday

 Recommendation: Sell Stop

 Entry Point: 1.2445

 Take Profit: 1.2353

 Stop Loss: 1.2500

 Key Levels: 1.2300, 1.2353, 1.2400, 1.2439, 1.2500, 1.2540, 1.2570, 1.2600


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