As a result of Tuesday trading the positions of CAD against USD almost did not change. After growth in the beginning of the week the pair traded in the narrow range. During the day CAD made consolidation attempts, but the reduction of oil prices and production deliveries prevented it from finishing them. The release of mixed indicators in the US construction sector also failed to cause activity bursts.
The market is waiting for the Fed's decision on the interest rate in view of which investors started to actively purchase US assets expecting the regulator to confirm the plans of one more interest rates increase this year. Although the level of inflation failed to reach target values the regulator was expecting a considerable part of the market believes the increase of the rates in December is still possible.
On the H4 chart the instrument was corrected to the middle line of Bollinger Bands., MACD histogram is above the signal line keeping a signal for the opening of long positions.
Support and resistance
Support levels: 1.2235, 1.2200, 1.2130, 1.2070.
Resistance levels: 1.2285, 1.2335, 1.2400.
Trading tips
Buy orders may be opened from the level of 1.2350 with target at 1.2400 and stop-loss at 1.2320.
Short positions may be opened from the level of 1.2190 with target at 1.2130 and stop-loss at 1.2220.