The Canadian dollar has been stable over the past 6 months. The rates continue within a flat trend, but with a wide range of 1.3251 - 1.3892. Even within this range, when quotes change, it's possible both to make decent money and lose investments, but we still prefer the first option, and today we will try to choose the right vector for opening new deals.
The Canadian dollar was under pressure in April due to falling oil prices, but black gold has risen in price in May and has good prospects. As for the Canadian economy, despite the end of the monetary policy tightening cycle in Canada, the CAD has good prospects against the USD, burdened by problems with the public debt limit. However, the USD is rising for the fifth trading day in a row on optimism regarding the revision of the limit. Strong macroeconomic reports also contribute to strengthening: the index of business activity has grown, as well as the number of sales in the real estate market.
We have to assess the US trade balance this week, but the main factor in the spotlight will be the US debt limit, which we predict will be extended at the last moment, as the Republicans this way want to get fulfilling the maximum number of requirements but will not allow a default. Thus, we are waiting for high volatility during the week. As for the technical analysis tools, they signal the effectiveness of the deals to BUY, which coincides with our plans to Buy USD today.
