Current trend
After yesterday’s decline, the USD/CAD pair is trading at 1.3410.
Investors are awaiting the release of Canada’s November gross domestic product (GDP) report, which is forecast to rise 0.1% after flat growth earlier. According to the extended report on employment in key sectors of the economy, presented by the National Bureau of Statistics, the number of workers receiving wages and benefits decreased by 88.3K or 0.5% in November, which is lower than the previous month, which reflected a correction of –24.0K (–0.1%). The largest reduction was recorded in secondary and primary schools, where the outflow of workers amounted to 6.3K or 7.5%, due to recent protests. In addition to the education sector, negative dynamics were observed in seven more sectors, including retail trade, where the indicator dropped by 7.0K or –0.3%.
The American dollar is trading at 103.100 in USDX, maintaining zero momentum ahead of tomorrow’s US Federal Reserve monetary policy meeting: according to the Chicago Mercantile Exchange (CME) FedWatch Instrument, the probability of interest rates remaining at 5.25–5.50% is 97.9% but experts are awaiting a forecast for long-term inflation, based on which it will be possible to predict the start date of quantitative easing.
Support and resistance
On the daily chart, the trading instrument is correcting near the resistance line of the local downward corridor with dynamic boundaries of 1.3380–1.3250.
Technical indicators maintain a buy signal, despite the local correction: the EMA fluctuation range on the Alligator indicator is directed upward, and the AO histogram forms corrective bars above the transition level.
Resistance levels: 1.3440, 1.3520.
Support levels: 1.3380, 1.3290.
Trading tips
Long positions may be opened after the price rises and consolidates above 1.3440 with the target at 1.3520. Stop loss – 1.3400. Implementation period: 7 days or more.
Short positions may be opened after the price declines and consolidates below 1.3380 with the target at 1.3290. Stop loss – 1.3420.
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