In Asian trading on Monday the USD/CAD was steadily strengthening, recovering from Friday's sharp drop caused by the intervention of the Bank of Japan in forex trading and fixing traders' positions on the eve of the weekend.
The Bank of Canada will hold a monetary policy meeting on Wednesday. The regulator is expected to hold a 50 basis points rate hike to 3.75% and confirm its intentions to further tighten monetary policy.
On Thursday, the third quarter U.S. GDP data will be released, which may give the USD a new growth impetus.
Technical analysis for USD/CAD
The main forex indicators for the Daily do not give clear signals. The Bollinger Bands are rearranging in a horizontal plane. MACD is in the positive range, but decreasing towards zero. The stochastic oscillator from top to bottom is approaching the 20% level.
If the price fixes above 1.3700, we return to the formation of long positions with take profit at 1.3853. We will set a stop loss at 1.3600.
In case of a rebound from 1.3700, we wait for consolidation below support at 1.3650. After this, we open sales with the target level of 1.3500. Protective stop is set at 1.3730.
If you are interested in USD/CAD analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest USD/CAD forecasts and signals contain support and resistance levels, as well as stop-loss levels.