The USD/CAD pair is in the upward trend.
The CAD is going to remain under pressure in the medium-term amid falling oil prices, slowing down GDP growth and the contraction of some economy sectors in Canada (e.g. construction) with simultaneous house prices growth, the strengthening USD and the American economy recovery.
Today a bunch of news is out in the US between 3:30 pm and 5 pm (GMT +3). If optimistic forecasts on Industrial Production for July and the Consumer Sentiment Index for August are confirmed, the pair is going to strengthen.
Support and resistance
While the pair remains above the level of 1.2800, any local decline should be considered as an opportunity to open or build up on long positions.
In the long-term, the pair may reach 1.4000 (2004 high), while in the medium-term it could grow to 1.3300, 1.3500.
On the daily chart, OsMA and Stochastic give sell signals, while on the 4-hour chart they signal purchases.
Support levels: 1.3070, 1.2980 (ЕМА144 and lower border of the channel), 1.2910 (ЕМА200 on the 4-hour chart), 1.2800.
Resistance levels: 1.3140, 1.3175, 1.3200, 1.3300.
Open long positions from the levels of 1.3070, 1.2980, 1.2910 with targets at 1.3100, 1.3140, 1.3175, 1.3200, 1.3230 and stop-loss at 1.2880.
Short positions can be opened after the breakdown of the level of 1.2800 with targets at 1.2650, 1.2540, 1.2290.