USDCAD 15 Min Potential Setups
The greenback is posting marginal gains vs. its Canadian peer on Thursday, taking USDCAD to the 1.3070 area while keeping an eye on crude oil dynamics. Spot is looking to revert two consecutive sessions with losses, amidst a better tone in the US dollar and a tepid recovery of crude oil prices, with the barrel of WTI retaking the $41.00 mark after dropping to fresh 4-month lows in sub-$40.00 levels on Wednesday (USDCAD Forex Trading Analysis).
USDCAD Forex Trading Analysis
The immediate resistance is noted at 1.3080 (5-DMA), above which the spot may target 1.3126 (10-DMA). A violation there could yield 1.3254 (July 27 high). The pair remains at the mercy of the oil market sentiment ahead of the weekly US initial jobless claims release. This will be followed by US factory orders and final durable goods orders release.
USDCAD Faces Strong Support
Major support – 1.3010 (trend line joining 1.26778 and 1.28610). Major resistance – 1.3150 (Aug 2nd high). The pair has made a temporary top around 1.3150 and declined from that level. It is currently trading around 1.30677. The Canadian dollar gained slightly against major pairs as WTI crude oil prices recovered from the low of $39.23 made yesterday. On the downside, further weakness can be seen below 1.3010 level. Any violation below 1.3010 will drag the pair down till 1.2960/1.2860 in the short term. The major resistance is around 1.3150 and any indicative break above targets 1.3185/1.3250. It is good to buy on dips around 1.3050 with SL around 1.3000 for the TP of 1.3100/1.3148 (USDCAD Forex Trading Analysis).
USDCAD Simple Continuation
The turnaround in sentiment took USDCAD to minor net losses with prices continuing to fluctuate around the 13 day moving average without sustaining any significant direction. This means immediate signals for sentiment cannot be assessed as strong but intraday momentum is negative and RSI points lower.
USDCAD Long Trade Area
USDCAD Long trade from 1.30400 to 1.30500 area to 1.32500. Based on D1 movement on Stoch RSI 3,3,14,14 Based on D1 Entry @ 1.30388 was the last D1 low from August 2nd to 1.31100. LONG @ 1.30400 to 1.30500 S/L: 1.30380 (USDCAD Forex Trading Analysis).
Attention now shifts to today’s BOE monetary policy decision, which has the potential to trigger a fresh bout of volatility in the FX market and provide opportunity for short-term momentum play. Meanwhile, the key driver for the pair’s near-term direction would remain Friday’s monthly employment details from the US, NFP.