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USD and CAD May Extend Rise as CAD Consumer Price Index Remains the Focus

Forex
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Friday, April 21, 2017/ 3:50 PM /Meristem



Source: www.merifx.com
 

Fundamental Indication 

USD: The US dollar has seen some mixed sentiments in recent times as a result of the US-North Korea standoff and the recent release of the Consumer Price Index (Actual 2.4% vs Forecast 2.6%), Consumer Price Index Ex Food & Energy (Actual 2.0% vs Forecast 2.3%) and the Advance Retail Sales (Actual -0.2% vs Forecast -0.2%) reports.

 

CAD: The Bank of Canada Rate Decision released on Wednesday, April 12, 2017 was to retain the interest rate at 0.5%. This caused the Canadian Dollar to wane against some of its counterparts. The Consumer Price Index (YoY) (MAR) will be released today with forecast at 1.8% versus the previous rate of 2.0%.

Technical Analysis

As at 10:52 AM the USD/CAD had appreciated by 1.63% since Thursday, April 13, 2017. This indicates positive sentiment in the Dollar against the Canadian Dollar. The pair has formed an ascending triangle with resistance line at 1.35882. Within the triangle, price is approaching a minor resistance area at 1.3537-1.3514.
 

Buy scenario 1:

· If the price pulls back to the 1.3437 line and a bullish candlestick confirmation, we advise a “BUY”.

·  Stop loss at the low of the bullish candlestick.

·  First profit target: 1.3526.

·  Second profit target: 1.3589.   
 

Buy scenario 2:
· If the price pulls back to the trend line with a bullish candlestick confirmation, we advise a “BUY”.

· Stop loss at the low of the bullish candlestick.

·First profit target: 1.3526.

·Second profit target: 1.3589 

Sell scenario 1:
·If the pair reaches the 1.3537-1.3514 resistance area with a bearish candlestick confirmation, we advise a “SELL”.

· Stop loss at the high of the bearish candlestick

· First Profit target at 1.3245

· Second Profit target at 1.3045 

Sell scenario 2:
· If the pair reaches the 1.3589 resistance level with a bearish candlestick confirmation, we advise a “SELL”.

·Stop loss at the high of the bearish candlestick

·First Profit target at 1.3245

· Second Profit target at 1.3045 

Enter Into The MARKET 

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