On Tuesday, the US Dollar strengthened against the Canadian one despite mixed statistics from the US.
Durable Goods Orders for September fell by 1.2% against forecasted decline by 3%. However, data on Consumer Confidence showed a larger than expected fall. In October, the index slipped to 97.6 points, while experts predicted a growth to 102.9 points.
Support and resistance
Bollinger Bands on the daily chart continues growing, while the price range is widening. At the same time, the indicator has formed a signal for correctional sales. MACD is growing and giving a buy signal. Stochastic reached its critical levels in the overbought zone and turning horizontally.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.3265 (local low), 1.3212, 1.3159, 1.3100, 1.3053, 1.3000 (psychologically important level), 1.2951, 1.2900, 1.2861, 1.2831 (15 October low), 1.2800.
Resistance levels: 1.3300 (local high), 1.3352, 1.3416, 1.3457 (29 September high), 1.3500.
Long positions can be opened after the breakout of the level of 1.3275 (with the appropriate indicators signals) with targets at 1.3330, 1.3400 and stop-loss at 1.3240. Validity – 1-2 days.
More likely, however, is the correctional scenario. Short positions can be opened after the breakdown of the level of 1.3220 with targets at 1.3155, 1.3080 and stop-loss at 1.3245. Validity – 1-2 days.