fbUSDCAD Forecast | Increasing Canadian retail sales bearish for USDCAD | IFCM New Zealand

Technical Analysis USDCAD : 2020-07-23

Recommendation for USD/CAD:

Sell
Strong SellSellNeutralBuyStrong Buy

Below 1.3370

Sell Stop

Above 1.3413

Stop Loss

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Senior Analytical Expert
Articles 1572
IndicatorValueSignal
RSI Neutral
MACD Buy
Donchian Channel Sell
MA(200) Sell
Fractals Sell
Parabolic SAR Buy

Chart Analysis

IFC Markets Tech Analysis

On 1-hour timeframe USDCAD: H1 is declining under the 200-period moving average MA(200) which is falling. We believe the bearish movement will continue after the price breaches below the lower bound of the Donchian channel at 1.3370. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 1.3413. After placing the order, the stop loss is to be moved to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis

Canada’s retail sales rose in May. Will the USDCAD continue falling?

Canada’s retail sales rose in May: retail sales surplus rose 18.7% over month in May after 25% drop in April. This is bearish for USDCAD.

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