On Monday, the Canadian Dollar barely changed against the American one amid quite calm beginning of the week.
The pair was supported by poor data from Canada, where Wholesale Sales for July remained at the same level as for June, while experts forecasted a 0.8% increase. Later in the day, however, a growth in the pair was restrained by poor data from the US, where Existing Home Sales for August fell a lot more than forecasts predicted.
Support and resistance
Bollinger Bands on the daily chart remains horizontal, while the price range does not change. MACD is attempting to turn up and giving a sell signal. Stochastic is in the overbought zone and growing that makes a growth towards 1.3300 within this wave unlikely.
Despite contradicting indicators’ signal, purchases remain the main recommendation for the pair.
Support levels: 1.3212, 1.3159 (16 September low), 1.3100, 1.3053, 1.3000, 1.2951 (12 August low).
Resistance levels: 1.3265 (local high), 1.3300, 1.3352 (25 August high).
Long positions can be opened after the breakout of the level of 1.3250 (with the appropriate indicators signals) with target at 1.3352 and stop-loss at 1.3200. Validity – 1-2 days.
Short positions can be opened after the breakdown of the level of 1.3159 with targets at 1.3100, 1.3000 and stop-loss at 1.3220. Validity – 2-3 days.