USD/CAD weekly special report based on 1 Lot Calculation:
CANADA:
- EVENT (WEDNESDAY, JULY 31 AT 13:30 GMT+1): CANADA GROSS DOMESTIC PRODUCT (GDP) (MAY). The GDP data is the Bank of Canada preferred inflation data, when it comes to interest rate decision making. If this data does not show a decline fom April’s 0.3%, then the Canadian Dollar might come under positive pressure.
USA:
- EVENT (WEDNEDSAY, JULY 31 AT 19:00 GMT+1): US FEDERAL RESERVE INTEREST RATE DECISION. Federal Reserve will meet on July 31, to set the Fed Funds rate target. According to the most recent estimates, some analysts are expecting the Federal Reserve to hold interest rates at the current level of 5.50%, but chances have been rising for a September cut.
- EVENT (FRIDAY, AUGUST 2 AT 13:30 GMT+1): US NONFARM PAYROLLS (NFP) AND UNEMPLOYMENT RATE. The US unemployment rate has recently gone up to its highest since December 2021 (4.1%). If unemployment remains as high, the Fed may have to start cutting rates sooner then later using maybe more aggressive approach. In this case, the US dollar could be expected to weaken in value.
TECHNICAL REVIEW:
- TECHNICAL ANALYSIS: THE USD/CAD IS TRADING NEAR THE TOP OF ITS SIDEWAYS CHANNEL (BETWEEN 1.3200 AND 1.3850). The chanel has been in place since September 2022, whereby the USD/CAD has tested the upper boundary of 1.38500 four times. On the downside, the USD/CAD has tested the lower boundery three times over the same period. The USD/CAD could be expected to soon undergo a downward correction after recently testing its upper boundary of 1.38500 again.
GRAPH: Weekly (April 2021 – July 2024)
Please note that past performance does not guarantee future results.
USD/CAD, July 30, 2024
Current Price: 1.3860
|
USD/CAD |
Weekly |
|
Trend direction |
|
|
1.4100 |
|
|
1.4050 |
|
|
1.3990 |
|
|
1.3720 |
|
|
1.3400 |
|
|
1.3200 |
Example of calculation based on weekly trnd direction for 1 Lot1
|
USD/CAD |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
-1,732 |
-1,371 |
-938 |
1,010 |
3,320 |
4,763 |
|
Profit or loss in €2 |
-1,602 |
-1,268 |
-868 |
935 |
3,071 |
4,406 |
|
Profit or loss in £2 |
-1,350 |
-1,069 |
-731 |
787 |
2,587 |
3,712 |
|
Profit or loss in C$2 |
-2,400 |
-1,900 |
-1,300 |
1,400 |
4,600 |
6,600 |
1. 1.00 lot is equivalent of 100,000 units
2. Calculations for exchange rate used as of 13:30 (GMT+1) 30/06/2024
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.