Last week was very volatile for the USD/CAD pair; however, at the end of the week, the price remained almost at the same level: the USD against the CAD is still trading near record highs.
Last Wednesday, the Canadian currency was supported for a short while by the Bank of Canada meeting. As it had been expected, the key interest rate remained unchanged at 0.5%. At the same time, the Regulator was positive about the prospects of the Canadian economy as a further decline in the national currency allows mitigating negative impacts from the China's slowdown.
Support and resistance
The indicator Bollinger Bands on the daily chart is horizontal, while the price range remains narrow. MACD is declining and keeping a weak sell signal. Stochastic is near the border of the overbought zone, no clear signal is being given.
The indicators recommend considering short positions in the short run or wait for a clearer signal.
Support levels: 1.3212, 1.3156, 1.3100, 1.3053, 1.3000 (strong psychological level), 1.2951 (12 August low).
Resistance levels: 1.3260, 1.3300, 1.3352 (25 August high), 1.3400.
Long positions can be opened after the pair rebounds from the level of 1.3212 (with the appropriate indicators signals) with targets at 1.3300 1.3352 and stop-loss at 1.3156.
Short positions can be opened after the breakdown of the level of 1.3156 with the target at 1.3000 and stop-loss at 1.3220.