On Wednesday the pair traded in the range of 1.2384-1.2509. The Canadian currency went down due to the poor data on the Canadian deficit of trade balance. The index amounted to 2.97 billion this month.
Today, Canadian business activity index will become known. This index has a great influence on the market and on the Canadian economy as a whole. According to preliminary estimates, the index will amount to 55.5, which is a positive factor for the Canadian currency; on the other hand, this level is lower than the previous one at 58.2, which can have a negative impact on the CAD. Traders shall also pay attention to the US unemployment rate: it is expected that this index will remain unchanged at the level of 5.4%, which can have a positive impact on the USD.
Support and resistance
On the daily chart moving average lines with the periods 20, 50 and 100 are below the price level. They are directed upwards, which confirms positive trend. MACD histogram is in the positive zone; histogram is crossing the signal line from top to bottom, forming a buy signal.
Resistance level is 1.2600.The nearest support level is the point of intersection of the moving average lines with the periods 20 and 50 (1.2347). Plus to this support levels are also at the levels of 1.2177 è 1.1920 (last month lows).
It is recommended to open long positions at the current price with the targets of 1.2600-1.2650 and protective order of 1.2347.Publication source