Last week, the USD/CAD pair was under pressure amid a growth in oil prices. The Canadian Dollar gained strong support when Saudi Energy Minister said the country would discuss measures aimed at stabilizing prices with other oil producers during a meeting in late September.
At the same time, Saudi Arabia boosted its oil output in July to a record 10.67 million barrels a day and lowered the pricing terms for Asian clients that is seen as a negative factor for the Canadian Dollar.
Support and resistance
Bollinger Bands on the 4-hour chart is moving down. MACD histogram remains in the negative zone, its volumes are falling and keeping. Stochastic is heading towards the border of the overbought zone.
Short positions seem preferable, but it is recommended to wait for clearer trading signals before placing your orders.
Support levels: 1.2948, 1.2935, 1.2922, 1.2912, 1.2901.
Resistance levels: 1.2974, 1.2988, 1.3199, 1.3002, 1.3016, 1.3061.
Short positions can be opened from the current levels with targets at 1.2925, 1.2915 and stop-loss at 1.2980. Validity – 1-3 days.
Long positions can be opened after the breakout of the level of 1.2980 with the target at 1.3010 and stop-loss at 1.2960. Validity – 2-4 days.