In the second half of October, the Canadian Dollar lost more than 400 points. However, since the beginning of this month the pair is in the downward trend representing strengthening in the CAD.
At the same time, yesterday the price of oil fell that would support the pair. Furthermore, the RBC Manufacturing PMI is due today and experts predict decline in the index. Thus, we can expect a growth in the USD/CAD pair.
Support and resistance
Presently the pair is trading near the 38.2% Fibonacci correction at the level of 1.3107 and below the middle MA of at the level of 1.3148. MACD’s histogram is in the negative zone, its volumes are falling.
If the price consolidates above the 23.6% Fibonacci correction the pair could grow to 1.3270 (upper MA of , 0% Fibonacci correction).
Pending buy orders can be placed at the level of 1.3180 with the target at 1.3240 and stop-loss at 1.3110.