USD/CAD: the pair shows ambiguous dynamics
Current trend
Today, during the Asian session, the USD/CAD pair is growing moderately, recovering from the active decline yesterday due to the market reaction to the publication of ambiguous reports on the US and Canadian labor markets. Now, the dollar has added about 0.32% and is preparing to test the level of 1.3100 for a breakout.
Canadian statistics for August reflected a sharp decline in the number of employees from 418.5K to 245.8K, which was significantly worse than market expectations of 275K. The unemployment rate in the country fell from 10.9% to 10.2%, which almost coincided with market forecasts of 10.1%. At the same time, the positive investor sentiment was supported by the average hourly wage, which increased by 6% YoY in August, as well as the Ivey business activity index, which was significantly better than forecasted: 67.8 points against 57.5 points.
Support and resistance
On the daily chart, Bollinger bands are steadily declining. The price range expands slightly from above, reflecting the ambiguous nature of trading in the short term. The MACD indicator is growing, maintaining a poor buy signal (the histogram is above the signal line). Stochastic is also strengthening, signaling in favor of further growth of the instrument in the ultra-short term.
The development of upward dynamics is possible in the nearest time intervals.
Resistance levels: 1.3100, 1.3132, 1.3160, 1.3200.
Support levels: 1.3043, 1.3000, 1.2975, 1.2950.
Current trend
Today, during the Asian session, the USD/CAD pair is growing moderately, recovering from the active decline yesterday due to the market reaction to the publication of ambiguous reports on the US and Canadian labor markets. Now, the dollar has added about 0.32% and is preparing to test the level of 1.3100 for a breakout.
Canadian statistics for August reflected a sharp decline in the number of employees from 418.5K to 245.8K, which was significantly worse than market expectations of 275K. The unemployment rate in the country fell from 10.9% to 10.2%, which almost coincided with market forecasts of 10.1%. At the same time, the positive investor sentiment was supported by the average hourly wage, which increased by 6% YoY in August, as well as the Ivey business activity index, which was significantly better than forecasted: 67.8 points against 57.5 points.
Support and resistance
On the daily chart, Bollinger bands are steadily declining. The price range expands slightly from above, reflecting the ambiguous nature of trading in the short term. The MACD indicator is growing, maintaining a poor buy signal (the histogram is above the signal line). Stochastic is also strengthening, signaling in favor of further growth of the instrument in the ultra-short term.
The development of upward dynamics is possible in the nearest time intervals.
Resistance levels: 1.3100, 1.3132, 1.3160, 1.3200.
Support levels: 1.3043, 1.3000, 1.2975, 1.2950.