At the beginning of the week, a downward correction in the USD/CAD pair has stopped developing amid growing demand for the US Dollar.
At present, not much macroeconomic data is released, and market participants pay almost no attention to it. Thus, the US currency managed to strengthen on Monday despite very poor statistics on Dallas Fed Manufacturing Business Index. In November, the indicator dropped to -20.1 from -4.9 points.
Support and resistance
Bollinger Bands indicator on the daily chart is still growing while the price range is narrowing actively down. MACD is falling and keeping a weak sell signal. Stochastic approached the border of the oversold zone and turned horizontally.
It is recommended to wait for clearer trading signals.
Support levels: 1.3850, 1.3780, 1.3700, 1.3650, 1.3622, 1.3554, 1.3500 (7 December level), 1.3457.
Resistance levels: 1.3915 (28 December high), 1.4000 (18 December high), 1.4050, 1.4100.
Long positions can be opened after the breakout of the level of 1.3910 with the target at 1.4000 and stop-loss at 1.3870. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1.3766 with the target at 1.3516 and stop-loss at 1.3800. Validity – 2-4 days.