Current trend

The upward correction in the USD/CAD pair may continue with the target at 1.3417 due to Canadian labor market statistics on Friday, which did not meet market expectations.

Thus, the December employment change was only 0.1K compared to the forecast of 13.5K and the previous value of 24.9K, and the unemployment rate decreased from 5.9% to 5.8% without supporting the national currency. On the other hand, the corresponding US data exceeded forecasts, and nonfarm payrolls increased by 216.0K, higher than preliminary estimates of 170.0K and 173.0K earlier, supporting the American dollar.

From the point of view of technical analysis, the trading instrument is moving in a long-term downward trend. However, a correction to the resistance level of 1.3417 is now developing, after reaching, short positions with the target at the December low of 1.3188 are relevant. The RSI indicator (21) has entered the neutral zone from the oversold area, which allows us to consider both buy and sell transactions.

The medium-term trend remains downward: last week, the price corrected to the area of key trend resistance 1.3370–1.3353 and is unsuccessfully trying to overcome it now, which allows us to consider short positions with the target at the December low of 1.3188.

Support and resistance

Resistance levels: 1.3417, 1.3491, 1.3607.

Support levels: 1.3188, 1.3100, 1.2970.

Trading tips

Short positions may be opened from 1.3417 with the target at 1.3188 and stop loss around 1.3485. Implementation time: 9–12 days.

Long positions may be opened above 1.3485 with the target at 1.3607 and stop loss around 1.3425.