USD/CAD: the pair is being corrected
This week the pair USD/CAD has been rising and hit resistance level of 1.0940. US Dollar has been supported by the positive national stats. Manufacturing PMI as well as Construction Spending have risen considerably. From the other hand, Canadian Dollar is under pressure of crude oil prices falling.
Today market players are waiting for the Bank of Canada decision of interest rate. Most probably it will remains at the same level of 1.0%, since the head of Canadian regulator Stephen Poloz promises the raise only in the middle of 2015.
Support and resistance
The pair is being corrected after a long rise. Target of the correction is the middle MA of Bollinger Bands indicator (1.0890). The breakdown of this level will allow the pair to go further down to the levels of 1.0860 and 1.0840. Otherwise the price can return to this week highs. Technical indicators confirm the downward trend. MACD histogram is in positive zone, its volumes are decreasing. Stochastic lines are directed downwards.
Short trades with targets at 1.0840 can be opened as soon as the price consolidates below 1.0890. Long positions with take-profits at 1.0940 should be placed if the price bounces off 1.0890 and breaks through 1.0900.
Analyst of LiteForex Investments Limited