The commodity currency USD/CAD is fell sharply from 1.3180 to 1.31 30 area due to a weaker dollar. On the other hand, optimization around the U.S. China trade second phase trade talks are keeping the WTI crude oil prices.
Since Canada's most of the income comes from crude oil exports, higher prices increase the demand for the Canadian dollar as traders buy CAD to make payment for crude oil imports.
Technically, the USD/CAD is facing strong support at 1.3130, the double bottom level. The pair has formed a series of Doji candles above this area, which is suggesting strong odds of a bullish reversal.
If you take a look at the RSI, the value of it is falling below 20. Therefore, the bear may get exhausted, and we may see bulls entering the market.
| Support | Pivot Point | Resistance |
| 1.3108 | 1.316 | 1.3189 |
| 1.3079 | 1.3079 | |
| 1.2998 | 1.3322 |
Traders are advised to keep an eye on 1.3130 area as above this; we may see buying trades until 1.3160 and even 1.3175. The bearish breakout may extend selling until 1.3100 and i.3060.
USD/CAD - Trade Setup
1) Buy Stop
Entry: Buy Stop 1.3150
Take Profit: 1.3175
Stop Loss: 1.3125
2) Sell Stop
Entry: Sell Stop 1.3125
Take Profit: 1.3100
Stop Loss: 1.3145
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
Recommended Content
Editors’ Picks
EUR/USD turns negative near 1.0760
The sudden bout of strength in the Greenback sponsored the resurgence of the selling pressure in the risk complex, dragging EUR/USD to the area of daily lows near 1.0760.
GBP/USD comes under pressure and challenges 1.2500
GBP/USD now rapidly loses momentum and gives away initial gains, returning to the 1.2500 region on the back of the strong comeback of the US Dollar.
Gold retreats from highs on stronger Dollar, yields
XAU/USD trims part of its initial advance in response to the jump in the Dollar's buying interest and the re-emergence of the upside pressure in US yields.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.