USD/CAD Trade Setup – Inflation Figures Awaited!
Today the Canadian dollar is one of the currencies in focus. As discussed in the morning brief, the Canadian economy is due to release the Inflation data during the New York session and it can be a good time to trade the USD/CAD. Check out the trade plan for Loonie…
Technical Outlook- Intraday
The USD/CAD soared more than 150 points in two days as the dollar continued to strengthen against its peers especially after the hawkish FOMC. For the moment, the USD/CAD is holding below $1.3062, the major resistance area.
Due to the fact the that Canadian economy’s most of the revenue comes from the crude oil export, nearly 70% from the United States, the Loonie shares a strong negative correlation with WTI crude oil. The crude oil prices have dropped below $70/barrel, which is also keeping the Canadian dollar weaker against the Buck.
USD/CAD – Key Trading Levels
Support Resistance
1.3036 1.3106
1.2993 1.3132
1.2923 1.3202
Key Trading Level: 1.3062
USD/CAD – Trade Plan
The idea is to stay in selling below $1.3060 with a target of $1.3035 and a stop loss above $1.3085. The fundamentals will change later today and we may see a reversal in the market.
Stay tuned to FX Leaders for more updates!
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