Current trend

Yesterday the pair significantly strengthened reaching 2004 highs at the level of 1.3780.

The reason for this strong growth is poor macroeconomic data coming out in Canada lately and falling oil prices. On Monday, the price of Brent crude oil fell below $37 per barrel. In addition, the pair is supported by approaching Fed meeting where the regulator is expected to increase the interest rate in the US from its current lows of 0.25%.

However, until the meeting is over the USD is likely to show choppy dynamics.

Support and resistance

Bollinger Bands on the daily chart is moving up while the price range is widening. However, the price is only now falling below its upper MA. MACD is slowing its growth but still giving a buy signal. Stochastic is in the overbought zone and trying to turn down.

The indicators recommend considering short positions.

Support levels: 1.3700 (local low), 1.3650, 1.3622, 1.3554, 1.3500 (8 December low), 1.3456, 1.3407, 1.3370, 1.3300.

Resistance levels: 1.3780 (local high), 1.3850, 1.3900.

Trading tips

Short positions can be opened after the price consolidation below the level of 1.3675 with targets at 1.3600, 1.3555 and stop-loss at 1.3700. Validity – 2-3 days.

Long positions can be opened after the breakout of the level of 1.3755 (with the appropriate indicators signals) with targets at 1.3800, 1.3850 and stop-loss at 1.3710. Validity – 1-3 days

USD/CAD: pair at 2004 highs

USD/CAD: pair at 2004 highs

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