Preparing for the release of significant statistics in Canada and the United States
Technical Analysis Summary USD/CAD: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Buy | |
| Parabolic SAR | Buy | |
| On Balance Volume | Neutral |
Chart Analysis
On the daily timeframe, USDCAD: D1 is trying to get out of the short-term downward channel. Some indicators of technical analysis have formed signals for a further increase. We do not rule out a bullish movement if USDCAD: D1 rises above the latest high: 1.365. This level can be used as an entry point. Initial risk cap possible below Parabolic signal, 2 latest down fractals and 200-day moving average line: 1.315. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (1.315) without activating the order (1.365), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of -
The Canadian economy is showing signs of a slowdown. Will USDCAD quotes continue to rise?
Annualized Canada Gross Domestic Product slowed down to +2.9% q/q in the 3rd quarter of this year after rising by +3.2% q/q in the 2nd quarter. This is the minimum for the last 5 quarters. The Canada Current Account deficit reached -C$11.1 billion (CAD) in the 3rd quarter of this year. This is the weakest indicator since the 1st quarter of 2019. This week in Canada, significant statistics will be released that can influence the dynamics of the Canadian dollar. On December 1, S&P Global Canada Manufacturing PMI and Labor Productivity will be published, on December 2 - data on the labor market (Employment Change). Theoretically, economic indicators may influence the decision of the Bank of Canada (+3.75%) regarding the rate change on December 7th. In the US, a lot of important statistics will also be released this week.