For six weeks, USD is traded against CAD in an upward range amid rising demand due to the release of strong macroeconomic statistics for the United States.
Canadian data in late October and early November namely releases on the labor market and economic growth rates for August, by contrast, were negative. However, the main event of the week is the election to the US Congress. The final results have not yet been announced, but it is already clear that the Republicans managed to keep the majority in the Senate but not in the House of Representatives. Despite this, Donald Trump called the results "a great success." However, the US currency is under serious pressure amid uncertainty. Today, the pair fell by more than 50 points and reached the lower border of the ascending channel at 1.3075.
The main releases are scheduled for the end of the current week: the decision of the Fed on rates, data on the labor market, and major indices.
Support and resistance
The medium-term trend remains upward, so one should open long positions on a corrective decline. It is quite possible that the instrument will head up to the recent local maxima (1.3155, 1.3170) from the current level. An alternative scenario would be the consolidation of the pair within the wide lateral consolidation.
Technical indicators on D1 chart and above confirm the growth forecast: MACD indicates the preservation of the high volume of short positions, Bollinger Bands are directed upwards.
Support levels: 1.3060, 1.3030, 1.3000, 1.2975, 1.2930, 1.2910.
Resistance levels: 1.3110, 1.3130, 1.3155, 1.3170, 1.3180, 1.3225.
In this situation, long positions may be opened from the current level with targets at 1.3155, 1.3170 and stop loss at 1.3040.
US Dollar vs Canadian
|Take Profit||1.3155, 1.3170|
|Support levels||1.2910, 1.2930, 1.2975, 1.3000, 1.3030, 1.3060, 1.3110, 1.3130, 1.3155, 1.3170, 1.3180, 1.3225|
The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.