Current trend
During yesterday's trading USD/CAD managed to leave the upward channel, and the pair came close to the level of 1.3200.
Considerable strengthening of the US dollar was catalyzed by statements of the US President. Donald Trump claimed he would like to stick to low interest rates for as long as possible because it would give American goods benefits in the conditions of the so-called currency manipulations by China, Germany, and Japan.
The key today's event will be the publication of the initial jobless claims report from the USA. If the data appears to be better than forecast, US currency may gain ground, and CAD may weaken. Moreover, the market is waiting for a statement by the Bank of Canada head in which he will comment on the current economic situation and monetary policy.
Support and resistance
On D1 chart the pair is consolidating close to the level of 1.3200. Indicators provide buy signals: the volumes of MACD histogram are growing below the zero line; Stochastic lines are directed downwards.
Resistance levels: 1.3265, 1.3330, 1.3400.
Support levels: 1.3200, 1.3110, 1.3040.
Trading tips
Buy positions may be opened after consolidation above 1.3265 with targets at 1.3330 and stop-loss at 1.3210.
Short positions may be opened from the level of 1.3200 with target at 1.3110 and stop-loss at 1.3230.
The period of implementation is 1-2 days.
During yesterday's trading USD/CAD managed to leave the upward channel, and the pair came close to the level of 1.3200.
Considerable strengthening of the US dollar was catalyzed by statements of the US President. Donald Trump claimed he would like to stick to low interest rates for as long as possible because it would give American goods benefits in the conditions of the so-called currency manipulations by China, Germany, and Japan.
The key today's event will be the publication of the initial jobless claims report from the USA. If the data appears to be better than forecast, US currency may gain ground, and CAD may weaken. Moreover, the market is waiting for a statement by the Bank of Canada head in which he will comment on the current economic situation and monetary policy.
Support and resistance
On D1 chart the pair is consolidating close to the level of 1.3200. Indicators provide buy signals: the volumes of MACD histogram are growing below the zero line; Stochastic lines are directed downwards.
Resistance levels: 1.3265, 1.3330, 1.3400.
Support levels: 1.3200, 1.3110, 1.3040.
Trading tips
Buy positions may be opened after consolidation above 1.3265 with targets at 1.3330 and stop-loss at 1.3210.
Short positions may be opened from the level of 1.3200 with target at 1.3110 and stop-loss at 1.3230.
The period of implementation is 1-2 days.