In the Asian session, the USD/CAD pair was trading in a rather narrow range, holding slightly above the levels from the previous close. On Thursday, the Canadian dollar depreciated notably against the USD and is currently staying under pressure. Most commodity currencies dropped amid negative sentiment in the energy market. The positive dynamics of the US dollar also contributed to the pair’s growth.
The greenback advanced against most major currencies and was in demand among investors amid rising risk aversion. The news that the stimulus package for the US economy has been postponed also supported the US dollar. In the first half of the day, I don’t expect the pair to make any sharp movements. A moderate downward correction is possible. However, I think that the uptrend should prevail.
A possible pivot point is seen at 1.3185, and I’m going to buy the pair above this level with the targets at 1.3275 and 1.3325. Under a different scenario, USD/CAD will start to fall until it breaks below the mark of 1.3185. After settling there, it may then test the levels of 1.3165 and 1.3155. I will probably open new long positions from these levels.
General direction: sideways
Short commentary: Price is hesitating to go down too strong and there is a sign of pause however, the main trend is still down so caution must be exercised if you want to take advantage of this. Remember, that my charts are always the daily time frame so there is enough opportunity to get from this opportunity.