LiteForex USD/CAD: the pair is trading in the flat
Investors failed to determine the direction of trading in the pair USD/CAD on Tuesday, August 29, and the instrument closed around zero and showed active, but mixed dynamics of trading during the day.
Canadian dollar showed weak reaction to the Tuesday release of Canadian macroeconomic statistics. Thus, the index of prices for raw materials dropped by 0.6% MoM after a fall by 3.6% last month. Manufacturing prices index dropped by 1.5% in July on a monthly bas after a fall by 1.1% in June. The real dynamics of the indicator was much worse than expected.
On Wednesday, August 30, investors will focus their attention on macroeconomic statistics from the USA. Thus, the publication of detailed assessment of the US GDP in Q2 2017 is expected at 15:30 (GMT+2).
Support and resistance
Bollinger Bands in D1 chart demonstrate a gradual decrease. The price range is slightly narrowing in the lower part. MACD histogram is slightly growing keeping a weak buy signal (and remaining above the signal line).
Stochastic is showing slightly more stable dynamics and is located in the middle of its area.
Resistance levels: 1.2548, 1.2597, 1.2617, 1.2654, 1.2689.
Support levels: 1.2500, 1.2464, 1.2439, 1.2412.
Long positions may be opened from the level of 1.2500 with targets at 1.2548 or 1.2597 and stop-loss at 1.2464. The period of implementation is 2-3 days.
Breaking down the level of 1.2500 may be a signal to corrective sales with target around 1.2439 and stop-loss at 1.2548. The period of implementation is 2 days.
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