Last week the USD/CAD pair significantly fell.
The fall was the result of poor macroeconomic data from the US that raised new doubts about the timing of the interest rate increase in the US. On Friday, data on the Non-Farm Payrolls for September was published. The figure came out at 142 thousands that was a lot worse than experts’ forecast of 203 thousands.
Despite optimistic statements of few members of the Fed earlier, the regulator is now likely to postpone the rake hike that markets expected in October and make the decision in December.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally, while the price range is widening. At the same time, the indicator is ready to form a signal for correctional purchases. MACD is falling and giving a strong sell signal. Stochastic has approached the oversold zone, which indicates a possibility of an upward correction in the short-term.
The indicators recommend considering short positions.
Support levels: 1.3100 (local low), 1.3053, 1.3000 (psychologically important level), 1.2951.
Resistance levels: 1.3159 (local high), 1.3212, 1.3265, 1.3300, 1.3352, 1.3416, 1.3457 (29 September high), 1.3500.
Open short positions from current prices with the target at 1.3032 and stop-loss at 1.3180.
Long positions can be opened after the breakout of the level of 1.3150 with the target at 1.3230 and stop-loss at 1.3100.