USD/СAD: the pair is likely to undergo downward correction
This week the currency pair USD/CAD has been trading in the range of 50 points. Investors are waiting for the key statistic data on GDP in the US and Canada for Q1. It is expected that both indices will be negative. As per preliminary forecast, American GDP can decline by 0.2%, while Canadian GDP will grow only by 1.8%, which is below the previous value.
Support and resistance
It is expected that in the near future the price of the pair will go down to 1.0860 (middle moving average line of “Bollinger bands” indicator.) From the level of 1.0838, the pair may reverse and resume upward movement to the levels of 1.0880 и 1.0910.
Technical indicators demonstrate mixed signals. MACD histogram is ready to move to the positive zone and form a buy signal. Stochastic lines are directed downwards, confirming downtrend.
In the current situation it is advisable to open short positions with the target of 1.0838, if the price breaks down the level of 1.0860. Pending buy orders can be placed at the level of 1.0838 with the target of 1.0880.
Analyst of LiteForex Investments Limited