CAD is trading within a wide sideways trend against USD.
During the last one and a half trading weeks, the pair has grown by more than 150 points twice, but then returned back to the level of 1.2745. Yesterday and today the instrument is tending to the levels of 1.2910, 1.2930, and reached the upper border of the range. The main catalyst for this movement was ambiguous US statistic and a change in trade moods: at the end of last week, demand for USD fell sharply but at the beginning of the current week it restored, which can be due to today's publication of FOMC Minutes.
At the end of the trading week, traders will focus on US employment market data, key indices, and Durable Goods Orders releases.
Support and resistance
In the short term, the sideways range can continue to form. The pair can be rebound from the upper border of the sideways channel and start moving to the local lows of 1.2455, 1.2445. However, the growth of USD, the breakout of the upper border of the channel and the strengthening of the momentum with the targets at 1.2975, 1.3000 is more likely.
On the higher charts, technical indicators confirm the growth in the medium term. On the weekly chart, the volume of MACD long positions increases, Bollinger bands are pointed upwards.
Support levels: 1.2835, 1.2755, 1.2745, 1.2700, 1.2670, 1.2630, 1.2550.
Resistance levels: 1.2910, 1.2930, 1.2975, 1.3000, 1.3050, 1.3170.
Long positions can be opened from the current level with the targets at 1.2975, 1.3000 and stop loss 1.2845.
US Dollar vs Canadian
|Take Profit||1.2975, 1.3000|
|Support levels||1.2550, 1.2630, 1.2670, 1.2700, 1.2745, 1.2755, 1.2835, 1.2910, 1.2930, 1.2975, 1.3000, 1.3050, 1.3170|
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