This week, there are plenty of news releases from both the US and Canada so the dynamic in the USD/CAD pair is going to be volatile.
The CAD remains under pressure from falling oil prices, falling number of houses sold in June by 0.8% with prices increased by 9.8, Building Permits decline by 14.5%, expectations of the interest rate increase in the US, and the continuing monetary policy softening by the Bank of Canada.
Today, pay attention to releases on the Personal Consumption Expenditure Price Index, ISM Prices Paid, Manufacturing PMIs, Personal Income and Construction Spending in the US.
Fundamental factors suggest that the pair continues growing.
Support and resistance
The pair broke out a resistance level at 1.3100 and continued growing.
Today, since opening the pair grew by 70 points, when the average daily volatility in the pair is 149.50 points. There possible a short-term correction towards 1.3060, 1.3015 and 1.2900.
OsMA and Stochastic on the 4-hour chart remain in the overbought zone. On the daily chart, the indicators give buy signals.
Support levels: 1.3100, 1.3060, 1.3015, 1.2900, 1.2835, 1.2800.
Resistance levels: 1.3200, 1.3300.
Open long positions after the price rebound from the levels of 1.3100, 1.3060, 1.3015with targets at 1.3190, 1.3230 and stop-loss at 1.2970.
Short positions can be opened after the breakdown of the level of 1.2800 with targets at 1.2650, 1.2540, 1.2290.