Current trend
Yesterday the pair USD/CAD strengthened in view of strong macroeconomic report on the US labor market and positive data on the trading balance in the previous month. Moreover, the value of the US industrial orders indicator was above the outlooks, while the trading balance of Canada for the previous month reflected the growth of trading deficiency in the country which was an unpleasant surprise for the Bank of Canada. At the same time, the Fed's members Patrick Harker and John Williams pointed out that positive tendencies in the US economy supported the Fed's plans to further increase the interest rate.
Today traders are cautious in view of simultaneous release of the data on the US and Canadian labor markets. Moreover, attention should be paid to the statements by the Fed's officials and Baker Hughes report on the number of active drilling rigs in the USA.
Support and resistance
On the D1 chart the instrument is trading near the upper border of Bollinger Bands. The indicator is directed upwards, while the price range is widening showing high possibility of continuation of the upward trend. MACD histogram is in the positive zone keeping the buy signal. Stochastic is approaching the border with the overbought area from below.
Support levels: 1.2505, 1.2405, 1.2350, 1.2245, 1.2155, 1.2080.
Resistance levels: 1.2630, 1.2695, 1.2775, 1.2880.
Trading tips
Long positions should be opened from the level of 1.2630 with targets at 1.2775, 1.2850 and stop-loss at 1.2530. The period of implementation is 1-3 days.
Short positions may be opened from the level of 1.2495 with target at 1.2360 and stop-loss at 1.2535. The period of implementation is 1-3 days.
Yesterday the pair USD/CAD strengthened in view of strong macroeconomic report on the US labor market and positive data on the trading balance in the previous month. Moreover, the value of the US industrial orders indicator was above the outlooks, while the trading balance of Canada for the previous month reflected the growth of trading deficiency in the country which was an unpleasant surprise for the Bank of Canada. At the same time, the Fed's members Patrick Harker and John Williams pointed out that positive tendencies in the US economy supported the Fed's plans to further increase the interest rate.
Today traders are cautious in view of simultaneous release of the data on the US and Canadian labor markets. Moreover, attention should be paid to the statements by the Fed's officials and Baker Hughes report on the number of active drilling rigs in the USA.
Support and resistance
On the D1 chart the instrument is trading near the upper border of Bollinger Bands. The indicator is directed upwards, while the price range is widening showing high possibility of continuation of the upward trend. MACD histogram is in the positive zone keeping the buy signal. Stochastic is approaching the border with the overbought area from below.
Support levels: 1.2505, 1.2405, 1.2350, 1.2245, 1.2155, 1.2080.
Resistance levels: 1.2630, 1.2695, 1.2775, 1.2880.
Trading tips
Long positions should be opened from the level of 1.2630 with targets at 1.2775, 1.2850 and stop-loss at 1.2530. The period of implementation is 1-3 days.
Short positions may be opened from the level of 1.2495 with target at 1.2360 and stop-loss at 1.2535. The period of implementation is 1-3 days.