The USD/CAD pair started this week with a growth but then lost most of its gains. This dynamics in the pair can be explained by the lack of important macroeconomic publications in the US and fluctuation in the oil market.
The price of oil lost about 2 percent on Friday after data on crude supplies and the number of active oil rigs were released. Genscape reported an increase of 26,460 barrels in the week to 15 July at Cushing delivery hub. Data from Baker Hughes showed that the number of active oil rigs rose by six to 357. These statistics are seen as a negative factor that might cause a shift in the fragile balance in the oil market.
Support and resistance
on the is moving horizontally while the price range remains narrow. is trying to turn up while still keeping a sell signal. is turning up near the border of the oversold zone.
Support levels: 1.2962, 1.2930, 1.2900, 1.2861 (local low), 1.2831 (4 July low), 1.2800, 1.2762, 1.2700 (23 June level).
Resistance levels: 1.3000, 1.3021 (local high), 1.3055, 1.3083, 1.3100, 1.3139 (11 July high).
Long positions can be opened above the level of 1.3000 (with appropriate indicators signals) with targets at 1.3100, 1.3139 and stop-loss at 1.2962, 1.2950. Validity – 2-3 days.
Short positions can be opened after the price rebounds down from the level of 1.3000 with the target at 1.2900 and stop-loss at 1.3050. Validity – 2-3 days.