This analysis includes the price movement of the U.S dollar against the Canadian dollar on the daily and four-hour frames, and expectations about the future movement and market direction
The US dollar against the Canadian dollar
On the daily time frame
The US dollar against the Canadian dollar is still in a general downtrend on the daily time frame.
The drop is 2660 points, and the rise is 941 points. It will not change the general bearish trend, of course, and it will not give a serious indication of an uptrend.
It bounced down from the resistance area near 1.3000, also respecting the 800 EMA.
On the 4-hour time frame
As we mentioned in the analysis on the daily time frame, the rise is corrective, and the pair is still in a general bearish trend, so traders are advised on going short on this pair.
On the 4-hour chart, we are still witnessing respecting the diagonal support line (the yellow dotted line)
To confirm the bearish scenario and enter into short positions, we must wait for the breach of the support line and the breach of the 1.25460 price and the closing which will be beneath it, which eventually opens the way for this pair to trade at the first support line located at 1.24246. In case it is breached, it will head to the second support line located at the price of 1.23015. The last support line that we await in case the previous two lines are breached will be at a price of 1.22507
This pair also awaits important news for this week:
Today, the markets are awaiting the release of important data for the US dollar and the Canadian dollar:
Speech by the Governor of the Central Bank of Canada
Ivey PMI for Canada
Rate of change in employment for Canada
Unemployment Complaint Rates for the United States
US private-sector employment report
The unemployment rate for the United States
Tags : USDCAD