Source: PaxForex Premium Analytics Portal, Technical Insight
Analysts at MUFG Bank note that a higher crude oil price should help strengthen the Canadian dollar. They expect the USD/CAD pair to trade at 1.2200 by the end of the third quarter and at 1.2000 by the fourth quarter.
USD/CAD,D1
Pivot: 1.2502
Analysis:
While the price is below 1.2650, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 1.2502
- Take Profit 1: 1.2365
- Take Profit 2: 1.2290
Alternative scenario:
If the level 1.2650 is broken-out, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 1.2650
- Take Profit 1: 1.2785
- Take Profit 2: 1.2850
Comment:
RSI shows the possibility of a downtrend in the medium term.
Key levels:
| Resistance | Support |
| 1.2965 | 1.2365 |
| 1.2850 | 1.2290 |
| 1.2650 | 1.2150 |
