Current trend

Against the strengthening of the American currency, the USD/CAD pair is trading at 1.3756.

The Canadian dollar’s position is stable, confirmed by preliminary estimates of today’s macroeconomic reports. According to forecasts, February manufacturing sales will increase from 0.2% to 0.7% and wholesale sales from 0.1% to 0.8%. Tomorrow at 14:30 (GMT 2), the consumer price index will be published. According to forecasts, the March indicator will be 0.7% MoM, decreasing the value from 3.1% to 3.0% YoY.

The American currency renews its year’s highs, reaching 105.70 in the USDX. Today at 14:30 (GMT 2), investors will pay attention to retail sales data, which can support the upward dynamics. According to experts, the March figure will increase by 0.4% against 0.6% earlier, and the core value – from 0.3% to 0.5%. Inventories may adjust by 0.3% and retail trade by 0.3% to 0.4%.

Support and resistance

On the daily chart, the trading instrument is approaching the resistance line of the ascending corridor with dynamic boundaries of 1.3900–1.3580.

Technical indicators are strengthening the buy signal: the EMA fluctuation range on the Alligator indicator is expanding upward, and the AO histogram is forming corrective bars above the transition level.

Resistance levels: 1.3780, 1.3900.

Support levels: 1.3710, 1.3600.

Trading tips

Long positions may be opened after the price rises and consolidates above 1.3780, with the target at 1.3900. Stop loss – 1.3700. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 1.3710, with the target at 1.3600. Stop loss – 1.3800.