Current trend

As a result of the strengthening of the American dollar, the USD/CAD pair is correcting around 1.3372.

The unstable dynamics of the Canadian currency are developing against macroeconomic statistics: the unemployment rate in December remained at 5.8%, better than forecasts for growth to 5.9%, as part-time employment rose by 23.6K after declining by 34.7K earlier. The total employment increased by only 0.1K compared to 24.9K last month, and the share of the economically active population decreased from 65.6% to 65.4%. Also, the average hourly salary of a permanent employee has changed by 5.7% compared to 5.0% previously, which is a positive sign for the labor market.

The American dollar is trading at 102.100 in the USDX after the publication of December Nonfarm Payrolls data: the value adjusted from 173.0K to 216.0K, and in the private sector from 136.0K to 164.0K. Compared to the same period last year, wage growth was 4.1%, slightly ahead of the previous 4.0%, and the unemployment rate remained at 3.7%, better than the predicted 3.8%.

Support and resistance

On the daily chart, the price is correcting below the resistance line of the local downward corridor with dynamic boundaries of 1.3400–1.3200.

Technical indicators are weakening the sell signal: the EMA fluctuation range on the Alligator indicator is actively narrowing, and the AO histogram is forming corrective bars below the transition level.

Resistance levels: 1.3400, 1.3489.

Support levels: 1.3320, 1.3210.

Trading tips

Long positions may be opened after the price rises and consolidates above 1.3400 with the target at 1.3489. Stop loss – 1.3350. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 1.3320 with the target at 1.3210. Stop loss – 1.3400.