Current trend
Having easily broken through a number of strong psychological support levels (1.3400, 1.3300, 1.3200), the pair USD/CAD dropped down to its 5-months minimum and started to correct. This Tuesday Canada released positive data on the volume of wholesale sales, but actively falling oil and growing USD supported by optimistic statements of FOMC officials brought the pair to corrective growth. Technically the D1 chart shows that growth started from the resistance level of 1.3175 that meets the lower border of the green channel.
Basic retail sales index from Canada is due today at 14:30 (GMT+2) and is expected to increase by 0.5%. Tomorrow Canada will release its consumer price index at 14:30 (GMT+2). The indicator is expected to drop by 0.2%.
The data on initial jobless claims is due from the USA today at 14:30 (GMT+2), and the number of claims is expected to increase. At 16:00 (GMT+2) the traders are expecting FOMC member Powell to make a speech.
We believe CAD still has potential to consolidate.
Support and resistance
Support levels: 1.3315, 1.3260, 1.3175, 1.3050.
Resistance levels: 1.3400, 1.3450, 1.3535, 1.3600.
Trading tips
Short positions may be opened at the market price with targets at 1.3260, 1.3175 and stop-loss at 1.3380.
Alternative scenario: buy positions may be opened after consolidation over the level of 1.3350 with targets at 1.3400, 1.3450 and stop-loss at 1.3230.
The period of implementation is 2 days.
Having easily broken through a number of strong psychological support levels (1.3400, 1.3300, 1.3200), the pair USD/CAD dropped down to its 5-months minimum and started to correct. This Tuesday Canada released positive data on the volume of wholesale sales, but actively falling oil and growing USD supported by optimistic statements of FOMC officials brought the pair to corrective growth. Technically the D1 chart shows that growth started from the resistance level of 1.3175 that meets the lower border of the green channel.
Basic retail sales index from Canada is due today at 14:30 (GMT+2) and is expected to increase by 0.5%. Tomorrow Canada will release its consumer price index at 14:30 (GMT+2). The indicator is expected to drop by 0.2%.
The data on initial jobless claims is due from the USA today at 14:30 (GMT+2), and the number of claims is expected to increase. At 16:00 (GMT+2) the traders are expecting FOMC member Powell to make a speech.
We believe CAD still has potential to consolidate.
Support and resistance
Support levels: 1.3315, 1.3260, 1.3175, 1.3050.
Resistance levels: 1.3400, 1.3450, 1.3535, 1.3600.
Trading tips
Short positions may be opened at the market price with targets at 1.3260, 1.3175 and stop-loss at 1.3380.
Alternative scenario: buy positions may be opened after consolidation over the level of 1.3350 with targets at 1.3400, 1.3450 and stop-loss at 1.3230.
The period of implementation is 2 days.