Crude Oil Stocks change statistics are due today in the US. The Canadian Dollar is a commodity currency, and the USD/CAD pair has a 92% correlation with the price of oil. Thus, amid a fall in oil prices and Canada’s loose monetary policy, the USD/CAD pair tends to grow.
Today, attention also needs to be paid to Personal Consumption Expenditures, Durable Goods Orders and New Home Sales statistics for November as well as to Reuters/Michigan Consumer Sentiment Index for December, due in the US. Canada, in its turn, releases GDP and Retail Sales data for October.
Support and resistance
Despite the pair is overbought, it remains in an upward channel on the weekly chart with the upper border above the level of 1.4000.
On the weekly and daily charts, OsMA and Stochastic recommend long positions. However, sell signals have appeared on the 4-hour and daily charts. Thus, a short-term downward correction might start towards the levels of 1.3830 (EMA50 on the 4-hour chart) and 1.3710 (23.6% Fibonacci and the lower border of an ascending channel on the 4-hour chart).
Support levels: 1.3830, 1.3710, 1.3550, 1.3415.
Resistance levels: 1.4000, 1.4050.
Long positions can be opened above the level of 1.3975 with targets at 1.4000, 1.4050, 1.4100 and stop-loss at 1.3940.
Short positions can be opened below the level of 1.3900 with targets at 1.3830, 1.3710 and stop-loss at 1.3930.