Current trend

The USD/CAD pair is trying to correct downwards while remaining near the record highs.

The USD is falling amid poor labor market statistics from the US. On Wednesday, the ADP released the statistics on the number of employed for July that showed a fall from 229 K to 185 K. On Thursday, the Jobless Claims publication also presented negative dynamics. Labor market statistics are particularly important before the publication of NFPR for July.

Today, labor market report for July is also published in Canada.

Support and resistance

Bollinger Bands on the daily chart is growing, but giving a sell signal now as the price broke out the top border of the price range. MACD is falling. Stochastic is moving downward from the overbought zone.

The indicators recommend sales in the short-term.

Support levels: 1.3100 (psychologically important level), 1.3053, 1.3000 (psychologically important level), 1.2958, 1.2916, 1.2861 (29 July low).

Resistance levels: 1.3152 (local high), 1.3212 (5 August high), 1.3250, 1.3300.

Trading tips

Open long positions after the price rebound from the level of 1.3100 (with the appropriate indicators signals) with targets at 1.3112, 1.3150 and stop-loss at 1.3030.

Short positions can be opened after the breakdown and consolidation below the levels of 1.3100, 1.3053 with targets at 1.3000, 1.2916 and stop-loss at 1.3160.

USD/CAD: pair is reversing before key publications

USD/CAD: pair is reversing before key publications




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