Since the opening of the Asian session, the US Dollar has been growing. Yesterday, the US currency gained support from macroeconomic statistics that strengthened expectations of a hike in US interest rates at the upcoming Fed meeting.
US Energy Information Administration reported a rise by 0.961 billion barrels in crude oil stocks that added pressure on Canada's currency.
Amid expectations of US interest rates increase, oversupply of the world oil market and Canada's loose , the USD/CAD pair tends to continue growing in the medium term.
Support and resistance
Though OsMA and on the recommend short positions, they are still giving buy signals on the weekly chart. On the 4-hour chart, the indicators are turning to long positions as well.
Long positions remain valid while the price is trading above the key of 1.2965 (38.2% Fibonacci and 144 on the ).
Support levels: 1.3240, 1.3200, 1.3140, 1.3100, 1.3050, 1.2965.
Resistance levels: 1.3350, 1.3400, 1.3450.
Long positions can be opened at the current level or from 1.3310, 1.3290, 1.3260, 1.3230 with targets at 1.3350, 1.3390, 1.3410, 1.3450 and stop-loss at 1.3190.
Short positions can be opened from the level of 1.3180 with targets at 1.3140, 1.3090, 1.3050, 1.2965 and stop-loss at 1.3220.