At the end of the week, the Canadian dollar is growing slightly, gaining back the losses of the beginning and middle of the week, when the currency was under pressure from news releases. The most notable decline came on Wednesday when the results of the Bank of Canada meeting were published.
The Regulator predictably kept its monetary policy unchanged, and the interest rate remained at the current level of 0.5%. At the same time, due to the economic decline, the BoC lowered growth forecasts for next year and for the first half of 2017 as well.
Support and resistance
Bollinger Bands indicator on the daily chart has turned horizontally, while the price range has stopped narrowing down. MACD is still growing and seeping a strong buy signal. Stochastic has reached the overbought zone and turned horizontally.
It is recommended to wait for clearer trading signals.
Support levels: 1.3053, 1.3000, 1.2951, 1.2900, 1.2861, 1.2831 (15 October low).
Resistance levels: 1.3100, 1.3159 (22 October high), 1.3212, 1.3265, 1.3300, 13352, 1.3415, 1.3457 (29 September high).
Short positions can be opened after the breakdown of the level of 1.3055 with targets at 1.3000, 1.2950 and stop-loss at 1.3070. Validity – 1-3 days.
When the price turns up and consolidates above the level of 1.3085, long positions will become valid with targets at 1.3155, 1.3220 and stop-loss at 1.3060. Validity – 1-2 days.