USD/CAD: the upward tendency remains

Current trend

USD continues to trade in a broad upward trend against CAD.

The pair demonstrates a significant upward momentum, and then sharply decreases. In late October, the price went up, but this trend gave way to a sharp fall in early November. Yesterday, the pair fell by more than 100 points, today the momentum has remained.

The main catalyst for the decline is the weakening of the US currency due to the release of yesterday’s weak data on the US labor market. Today, special attention should be paid to statistics on Unemployment Rate and Nonfarm Payrolls in the US.

Support and resistance

Technically, the pair is approaching the lower boundary of the ascending channel, which may indicate a change in momentum from the level of 1.3030. Chances are high that the uptrend will continue, which is confirmed by the technical indicators on the D1 chart and above. MACD indicates the preservation of the high volume of long positions, and Bollinger Bands are still directed upwards.

Resistance levels: 1.3060, 1.3110, 1.3130, 1.3150, 1.3180, 1.3225.

Support levels: 1.3030, 1.3000, 1.2975, 1.2910, 1.2885, 1.2860.

Trading tips

In this situation, long positions may be opened from the current level with target at 1.3225 and stop loss at 1.2990.

US Dollar vs Canadian

Buy Sell Spread
1.31043 1.3102 23

Scenario

Timeframe Weekly
Recommendations BUY
Entry Point 1.3055
Take Profit 1.3225
Stop Loss 1.2990
Support levels 1.2860, 1.2885, 1.2910, 1.2975, 1.3000, 1.3030, 1.3060, 1.3110, 1.3130, 1.3150, 1.3180, 1.3225

USD/CAD: the upward tendency remains

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