USD/CAD: general review
Current trend
Since the middle of last week, the pair was growing amid publications of poor macroeconomic statistics in Canada. The Trade Balance deficit increased from 2.47 to 3.41 billion Canadian Dollars, while the Net Employment Change declined by 2.1 thousands, which was substantially worse than forecasts.
Today attention needs to be paid to data on the JOLTS Jobs Opening in the US. The index is expected to fall from 5.445 to 5.412 thousands that might pressure the pair.
Support and resistance
On the 4-hour chart, the pair is trading in the upper Bollinger band, while bands are directed up and the price range is expanding. MACD histogram is in the positive zone and its volumes are stable. Stochastic is trying to turn up.
The indicators recommend long positions.
Support levels: 1.2937, 1.2906, 1.2841, 1.2794, 1.2698, 1.2640, 1.2574, 1.2538, 1.2492.
Resistance levels: 1.2967, 1.3018, 1.3056, 1.3084, 1.3125.
Trading tips
Long positions can be opened from current prices with the target at 1.3018 and stop-loss at 1.2937. Validity – 1-2 days.
Short positions can be opened after the price rebound from the level of 1.3018 with targets at 1.2906 and stop-loss at 1.3056. Validity – 1-2 days.
