The Canadian Dollar was strengthening for one month until it reached its highs. However, since the middle of October the currency is falling.
Today the Consumer Price Index is due in Canada. The index is forecasted to decline by 0.2% that would pressure the CAD. At the same time, the latest data on the Markit Manufacturing PMI came out higher than 50 points, which supports the USD.
Support and resistance
Currently the pair is trading near the level of 1.3033 (38.6% Fibonacci correction) and the middle MA of at the level of 1.3060. MACD’s histogram for now is in the negative zone, its volumes are falling. If the price consolidates above the level of 1.3080, the pair might grow to 1.3170 (upper MA of , 0% correction).
To place pending buy orders from the level of 1.3100 with target 1.3160 and stop loss at 1.3040.