USD/CAD: general analysis
The USD/CAD pair continues growing amid a fall in oil prices, which were pressured by data on US crude oil stocks. At the same time, it should be noted that though Canada’s economy showed a strong growth in July, it had no influence on dynamics in the pair. At present, further upward movement seems a likelier scenario amid expectations that the Fed will soon raise its interest rates.
Today the US Dollar can gain support in case of strong data for August on the ISM Manufacturing PMI and ISM Prices Paid.
Support and resistance
Bollinger Bands on the 4-hour chart is directed up while the price range is showing no changes. MACD is in the positive zone, its volumes remain high. Stochastic is approaching the border of the oversold zone.
According to the indicators, long positions seem preferable.
Support levels: 1.3090, 1.3076, 1.3049, 1.3028, 1.3001.
Resistance levels: 1.3128, 1.3140, 1.3151, 1.3176, 1.3198.
Long positions can be opened from the current level with targets at 1.3140, 1.3150 and stop-loss at 1.3090. Validity – 1-3 days.
Short Long positions can be opened from the level of 1.3155 with the target at 1.3100 and stop-loss at 1.3175. Validity – 2-4 days.