USD/CAD Technical Analysis | USD/CAD Trading: 2020-07-22 | IFCM Turkey
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USD/CAD Technical Analysis - USD/CAD Trading: 2020-07-22

USD/CAD Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Below 1,341

Sell Stop

Above 1,371

Stop Loss

Mary Wild
Senior Analytical Expert
Articles 2058
IndicatorSignal
RSI Neutral
MACD Neutral
MA(200) Neutral
Fractals Sell
Parabolic SAR Sell
Bollinger Bands Sell

USD/CAD Chart Analysis

USD/CAD Chart Analysis

USD/CAD Technical Analysis

On the daily timeframe, USDCAD: D1 broke down the neutral trend support line. A number of technical analysis indicators formed signals for a further decline. We do not rule out a bearish movevent if USDCAD falls below its latest minimum: 1.341. This level can be used as an entry point. The stop loss can be plased above the last two upper fractals, the upper Bollinger band, 200-day moving average and the Parabolic signal: 1.371. After opening a pending order, we move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to a four-hour chart and set a stop-loss, moving it in the direction of the trend. If the price meets the stop loss level (1.371) without activating the order (1.341), it is recommended to delete the order: some internal changes in the market were not taken into account.

Fundamental Analysis of Forex - USD/CAD

Canadian retail sales rose in May. Will the Canadian dollar continue to strengthen?

On the USDCAD chart, it looks like a downward movement. Retail sales in May increased by 18.7% compared to April, when this indicator shrank by 25%. The increase was facilitated by the lifting of some quarantine measures after the weakening of Covid-19. The New Housing Price Index continued to rise in June. It added 1.3% in annual terms, which may be evidence of the recovery of the Canadian real estate market. Important inflation data for June will be released on July 22. Inflation is expected to move up in annual terms by 0.3% compared to deflation (-0.4%) in May. This could be another proof of the recovery in the Canadian economy and have a positive effect on the Canadian dollar. The emerging appreciation of oil, Canada’s main export base, may be an additional good factor.

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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.

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