This week the USD/CAD pair significantly fell, despite poor macroeconomic statistics from Canada.
The fall in the pair was a result of growing oil prices and poor labour market data for September from the US that came out worse than forecasts.
Because today is Friday, traders should be aware that there could be profit fixation on short positions in the pair. It is also worth noting that with an average daily volatility of 95 points, today the pair already fell by more than 75 points, and with the average monthly volatility of about 444 points, since the beginning of the month the pair declined by more than 375 points.
Support and resistance
The price broke down support levels at 1.3220 (ЕМА200 on the 4-hour chart), 1.3150 (ЕМА50 on the daily chart) and is heading towards the key support level at 1.2800 (March highs, ЕМА144 on the daily chart).
OsMA and Stochastic on the 4-hour, daily and weekly charts give sell signals.
Support levels: 1.2910, 1.2875, 1.2800.
Resistance levels: 1.3070, 1.3150, 1.3220, 1.3260.
Short positions can be opened from current prices with the target at 1.2875 and stop-loss at 1.2990.
Long positions can be opened above the level of 1.3030 with the target at 1.3200 and stop-loss at 1.3000.