Since the beginning of October, the CAD strengthened against the USD and the pair fell by nearly 600 points. The pair entered a correction as it reached 4-months lows. At present, the price is squeezed between levels and trading in the range of 200 points.
Today, publications on the Bank of Canada Interest Rate Decision and its Statement are due. The rate is predicted to remain unchanged at 0.5%. There are no important publications from the US today thus news from Canada are going to be the main driver on the market.
Support and resistance
From the technical point of view, the pair is trading near 23.6% Fibonacci correction at the level of 1.2979. A further growth towards 38.2% correction is possible, where the upper MA of is situated. MACD’s histogram is in the positive zone and its signal line is directed up that indicates a growth continuation.
If the price breaks down the at 1.2979, the pair could fall towards 1.2900 and farther to 1.2829.
Long positions can be opened from current prices and from 1.2979 with the target at 1.3071 and stop-loss at 1.2934.