Current trend
The Canadian Dollar reached its 2004 lows amid falling oil prices. The central Bank of Canada is considering additional measures to prevent the economy from serious shocks. In his recent speech, the head of the Bank of Canada S. Poloz stated that the regulator might cut its interest rate to -0.5% in case of a crisis. It was the first time that the regulator announced a possibility of the negative interest rates. If rates are reduced, the CAD can weaken.
Support and resistance
At present the pair is trading between the levels of 1.3621 (0% Fibonacci correction) and 1.3483 (23.6% Fibonacci correction).
Support levels: 1.3483.
Resistance levels: 1.3621.
Trading tips
Pending buy orders can be placed at the level of 1.3600 with 20 points trailing stop.
The Canadian Dollar reached its 2004 lows amid falling oil prices. The central Bank of Canada is considering additional measures to prevent the economy from serious shocks. In his recent speech, the head of the Bank of Canada S. Poloz stated that the regulator might cut its interest rate to -0.5% in case of a crisis. It was the first time that the regulator announced a possibility of the negative interest rates. If rates are reduced, the CAD can weaken.
Support and resistance
At present the pair is trading between the levels of 1.3621 (0% Fibonacci correction) and 1.3483 (23.6% Fibonacci correction).
Support levels: 1.3483.
Resistance levels: 1.3621.
Trading tips
Pending buy orders can be placed at the level of 1.3600 with 20 points trailing stop.