Yesterday the pair showed choppy dynamics and slightly fell from local highs.
The pair however still receives support amid market expectations of an interest rate increase at the Fed’s December meeting.
At the same time the pair remains under pressure due to many macroeconomic publications that are due this week in the US and Canada. Today the third quarter GDP data is due in Canada, the BoC Interest Rate Decision is out on Wednesday, and on Friday the labour market data will be published in both the US and Canada.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range narrowed to its critical levels. MACD is slowly falling and giving a buy signal. Stochastic is growing and approaching the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.3300 (last week lows), 1.3265, 1.3234 (12 November low), 1.3164, 1.3100, 1.3037 (3 November low), 1.3000.
Resistance levels: 1.3370 (local high), 1.3416, 1.3457 (29 September high), 1.3500 (2004 highs).
Long positions can be opened from the level of 1.3360 with the target at 1.3420 and stop-loss at 1.3300.
Short positions can be opened from the level of 1.3330 with the target at 1.3250 and stop-loss at 1.3370. Validity – 2-3 days.