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29.02.202414:37 Forex Analysis & Reviews: USD/CAD: trading scenarios on February 29, 2024

Exchange Rates 29.02.2024 analysis

USD/CAD is currently developing positive dynamics within the upward channels on the daily and weekly charts after rebounding from the zone of key support levels at 1.3490 (200 EMA, 50 EMA on the daily chart), 1.3500 (144 EMA on the daily chart), and overcoming the resistance level of 1.3540 yesterday. The price seems to have finally broken out of the range formed between the levels 1.3450 and 1.3540, in which USD/CAD has been trading since mid-January.

Exchange Rates 29.02.2024 analysis

A breakthrough of the next local resistance level at 1.3615 will confirm the bulls' intention to push the pair towards the upper boundary of the upward channel on the weekly chart and the highs of October–November of the previous year, near the 1.3900 mark.

Intermediate targets, in this case, will be located near the levels 1.3700, 1.3780, 1.3800, and 1.3860.

Exchange Rates 29.02.2024 analysis

In an alternative scenario, a decline within the aforementioned upward channels and towards key supports at levels 1.3500, 1.3490 will resume.

A breakthrough of these levels and the important support level at 1.3452 (23.6% Fibonacci retracement level in the growth wave from the level of 0.9700 to the level of 1.4600, reached in June 2016) will bring USD/CAD back into the medium-term bearish market zone.

The first signal for the implementation of this scenario could be a breakthrough of today's low at 1.3570.

Increased volatility in the USD/CAD pair can be expected at 13:30 GMT.

Support levels: 1.3570, 1.3540, 1.3522, 1.3500, 1.3490, 1.3465, 1.3452, 1.3400, 1.3370, 1.3300, 1.3280, 1.3200

Resistance levels: 1.3600, 1.3615, 1.3700, 1.3775, 1.3800, 1.3860, 1.3890, 1.3900, 1.3970, 1.4000

Trading Scenarios:

Main Scenario: Buy at the market, Buy Stop at 1.3620. Stop-Loss at 1.3560. Targets at 1.3700, 1.3775, 1.3800, 1.3860, 1.3890, 1.3900, 1.3970, 1.4000.

Alternative Scenario: Sell Stop at 1.3560. Stop-Loss at 1.3620. Targets at 1.3540, 1.3522, 1.3500, 1.3490, 1.3465, 1.3452, 1.3400, 1.3370, 1.3300, 1.3280, 1.3200.

"Targets" correspond to support/resistance levels. This also does not imply that they will necessarily be reached but can serve as a guide in planning and placing trading positions.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Jurij Tolin,
Analytical expert of InstaSpot
© 2007-2024
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