Current trend

The USD/CAD pair is correcting at around 1.3712 amid stabilization of US dollar quotes.

The Canadian currency weakly competes with the American one even against the backdrop of positive macroeconomic statistics. In September, the Industrial Product Price in Canada added 0.4%, exceeding the 0.3% predicted by analysts, and in annual terms the indicator increased by 0.6% after zero dynamics in August. In turn, the Raw Material Price Index in monthly terms rose by 3.5% against the forecast of 2.3%, and in annual terms it went up from -4.0% to 2.4%. Today in Canada, Retail Sales data will be published: the figure is expected to decline by 0.3% in August on a monthly basis.

In turn, US dollar quotes are maintained around 106.000 in the USD Index, having received support from data on the American labor market. Initial Jobless Claims in the US amounted to 198.0 thousand after 211.0 thousand a week earlier, but Continuing Jobless Claims amounted to 1.734 million compared to 1.705 million recorded last week. In addition, data on Existing Home Sales reflected a decrease in the indicator in September from 4.04 million to 3.96 million.

Support and resistance

On the daily chart, the price is correcting within a local ascending corridor with dynamic boundaries of 1.3840–1.3600, moving in the direction of the resistance line.

Technical indicators are holding a buy signal, which has recently intensified: the range of EMA fluctuations on the Alligator indicator continues expanding, and the AO histogram is forming new corrective bars, being above the transition level.

Support levels: 1.3640, 1.3500.

Resistance levels: 1.3750, 1.3860.

Trading tips

If the asset continues local growth and the price consolidates above 1.3750, long positions with the target at 1.3860 will be relevant. Stop-loss — 1.3700. Implementation time: 7 days and more.

If the asset continues declining and the price consolidates below 1.3640, short positions can be opened with the target at 1.3500. Stop-loss — 1.3700.