Current trend
Last week, the USD/CAD pair developed its downward trend and hit new local lows at the level of 1.2831. At the same time, the due to the large number of controversial US macroeconomic releases, the pair dynamics was mixed.
In particular, on Wednesday, the American currency was under significant pressure from Retail Sales statistics, but then, on Friday, the pair managed to strengthen, supported by favorable Consumer Sentiment Index, which grew from 87.2 to 92.1 points in October.
Support and resistance
Bollinger bands indicator on the daily chart is declining, the price range is narrowing down actively. MACD is trying to turn up, while still keeping a sell signal. Stochastic is trying to rebound from the border of the oversold zone.
Bollinger Bands and Stochastic indicate a possibility of an upward correction in the short term. At the same time, it is recommended waiting for MACD to give a “bullish” signal.
Support levels: 1.2900 (near 9 and 12 October local low), 1.2861, 1.2831 (15 October current local low), 1.2800.
Resistance levels: 1.2951, 1.3000 (important psychological barrier), 1.3053, 1.3100, 1.3159, 1.3212, 1.3265, 1.3300.
Trading tips
Long positions can be opened after the breakout of the level of 1.2955 with the target at 1.3050 and stop-loss at 1.2980. Validity – 2-3 days.
If the pair fails to breakout the level of 1.3000 and turns down, short positions can be opened with the target at 1.2800 and stop-loss at 1.3050. Validity – 2-4 days.