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?