At the opening of the Asian session, the USD/CAD pair was declining due to a rise in oil prices.
Tomorrow, the Energy Information Administration releases Crude Oil Stocks change statistics. The indicator is expected to decline that may temporary support the price of oil and, therefore, the Canadian currency.
However, in the medium term, the USD/CAD pair tends to continue its downward dynamics due to the strengthening in the USD, low oil prices and the direction of the Bank of Canada's monetary policy.
Today, attention needs to be paid to a block of news releases from the US and to the publication of the BoC Review that gives information on the country’s economy and monetary policy.
Support and resistance
OsMA and Stochastic indicators on the 4-hour chart recommend short positions. A downward correction may reach the support levels of 1.3310 (EMA50), 1.3285 (the lower border of the upward channel on the 4-hour chart), 1.3240 (EMA144), 1.3215 (EMA200 on the 4-hour chart).
On the daily and weekly charts, the indicators keep giving buy signals. Long positions remain valid while the price is above the key support level of 1.2965 (EMA144 and 38.2% Fibonacci).
Support levels: 1.3310, 1.3285, 1.3240, 1.3215, 1.3140.
Resistance levels: 1.3400, 1.3450.
Long positions can be opened above the level of 1.3400 with the target at 1.3460 and stop-loss at 1.3370.
Short positions can be opened below the level of 1.3330 with targets at 1.3255, 1.3220 and stop-loss at 1.3360.