USD / CAD overview
On Monday, USD / CAD has not yet decided on the direction of movement and is trading in a narrow price range near the level of 1.2500.
The fall in Treasury yields is still the main factor behind the decline in the US dollar.
At the same time, Canadian macroeconomic reports published on Friday disappointed investors. The dynamics of wholesale sales in February decreased by 0.7% against the forecast of a decline of no more than 0.4%.
A large block of news on inflation in Canada will be released on Wednesday, as well as a meeting of the Bank of Canada followed by a press conference of the regulator. The markets believe that no changes are expected in monetary policy, the rate will remain at the same levels.
Technical Analysis USD / CAD
According to the chart of the daily formation (Daily), the Bollinger Bands indicator is being pulled into a flat.
The MACD indicator is dropping below the zero level and holding a sell signal.
The stochastic oscillator has twice tested the 20% border from top to bottom, but failed to break it, bounced back and begins to rise.
In case of a breakdown of support 1.2472, we are waiting for consolidation and after that we open short positions with a take profit at 1.2400. Stop loss is set at 1.2510.
In case of a rebound from the area 1.2500 – 1.2472, we wait for a breakdown above 1.2554 and after that we open purchases with a take profit of 1.2650. Placing a stop loss at 1.2500.