USD/CAD: general review
Yesterday the pair substantially strengthened amid the publication of labour market data in the US. Initial Jobless Claims unexpectedly fell to 247 thousands while economists predicted a growth to 263 thousands. In addition, the number of Continuous Claims shrank by almost 40 thousands.
Today attention needs to be paid to data on the Consumer Price Index in Canada and Markit PMI’s in the US.
Support and resistance
On the 4-hour chart, the pair is trading in the upper Bollinger band while the price range narrowed, which indicates that the trend will likely change in the nearest future. MACD histogram is in the negative zone and its volumes are growing. Stochastic has left the overbought zone suggesting a fall continuation.
The indicators recommend short positions.
Support levels: 1.2691, 1.2644, 1.2619, 1.2591.
Resistance levels: 1.2752, 1.2764, 1.2794, 1.2855, 1.2889, 1.2944, 1.2993.
Long positions can be opened after the breakout of the level of 1.2764 with the target at 1.2855 and stop-loss at 1.2691. Validity – 1-2 days.
Short positions can be opened from the level of 1.2691 with the target at 1.2619 and stop-loss at 1.2752. Validity – 1-2 days.