Currenttrend
This Tuesday the pair USD/CAD has reached four-year highs at 1.0977. The demand of Canadian currency is decreasing due to the unsatisfactory state of economy of Canada. The worst is labour market: unemployment level has risen up to 7.2%, and number of new paid employees has dropped to the level of 45 900.
From the other hand, American Dollar is supported by positive stats on Retail Sales, which exceeded forecasts and hit the level of 0.2%. Today the movement of the pair will be most probably affected by the Beige Book publication.
Support and resistance
The pair is trading around 1.0977, but we expect a correction to the level of 1.0930, because the price chart has broken through the upper line of the Bollinger Bnads indicator. Technical indicators confirm the possibility of the further rise up to the levels 1.1025 and 1.1065. MACD histogram is in positive zone, its volumes are decreasing. Stochastic lines are in overbought zone and directed upwards.
Trading tips
It is recommended to open long trades at current price with targets at 1.0125. Short-term sell positions with take-profits at 1.0930 can be opened, if the prices breaks down the support level of 1.0960.
Dmitriy Zolotov
Analyst of LiteForex Group of Companies
