The Canadian Dollar managed to strengthen against the US Dollar amid negative macroeconomic data for the US. Moreover, the demand for the USD was falling due to the fact that the currency was strongly overbought at the end of the last year.
Negative data on Unemployment Rate was released in Canada; however, the CAD was supported by favorable statistics on PMI and Building Permits.
Today, there are no macroeconomic releases that might influence dynamics in the pair. Attentions needs to be paid only to Fed's semiannual Monetary Policy Report.
Support and resistance
Today, the pair is likely to remain within a narrow sideways channel. Later on, a fall to 1.3500 should be expected. At this level, the price tends to turn up and resume its growth. In the long term, the trend will be upward. The pair might get support from Fed’s Chair Janet Yellen speech, due on Thursday.
Support levels: 1.1165, 1.1135, 1.1085, 1.1075, 1.1040, 1.0985, 1.0900, 1.0855, 1.0825, 1.0770.
Resistance levels: 1.1200, 1.1250, 1.1320, 1.1385, 1.1450, 1.1540, 1.1600, 1.1670.
Long positions can be opened at the current level or from 1.3800, 1.3715, 1.3650 with the target at 1.4450 and the long-term target at 1.4685 and stop-loss at 1.3430.