USD/CAD technical analysis: Will the USD/CAD quotes rise?

Dmitry Lukashov IFC Markets

Recommendation for USD/CAD: Buy

Buy Stop : Above 1,333

Stop Loss : Below 1,299

Indicator	Value	Signal
RSI		Neutral
MACD		Buy
MA(200)		Neutral
Fractals		Buy
Parabolic SAR		Buy
Bollinger Bands		Buy

Chart Analysis

On the daily timeframe, USDCAD: D1 exceeded the downtrend resistance line. A number of technical analysis indicators formed signals for further growth. We do not exclude a bullish movement if USDCAD rises above the upper Bollinger band: 1.333. This level can be used as an entry point. We can place a stop loss below the Parabolic signal, the lower Bollinger band and the last two lower fractals: 1.299. After opening a pending order, we can 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 the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (1.299) without activating the order (1.333), it is recommended to delete the order: some internal changes in the market have not been taken into account.

Fundamental Analysis

The Canadian economy is showing signs of slowing recovery from the coronavirus pandemic. Will the USDCAD quotes rise?

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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