Current trend

This week, the USD/CAD pair rose to 1.3775 against US macroeconomic statistics.

Thus, in September, the consumer price index fell from 2.5% to 2.4% YoY, above the forecast of 2.3%, and the core indicator was 3.3% compared to 3.2%. So, at the November meeting, US Fed officials will most likely adjust the interest rate not by –50 basis points but by –25 basis points, to 4.75%. In Canada, labor market data is due today at 14:30 (GMT 2). The change in employment may be 29.8K, which will support the Canadian dollar. However, an expected increase in the unemployment rate from 6.6% to 6.7% may limit its growth.

This week, the long-term trend reversed upwards when the price broke through the key trend resistance level of 1.3616 and reached the resistance level of 1.3775. Then, growth to the area of ​​1.3886 and 1.3960 may follow. The support level is shifting to 1.3615, where long positions with the target at 1.3775 are relevant. After a breakdown of 1.3615, the downward trend may be restored, and the price will reach ​​1.3440.

The medium-term trend reversed upwards when the quotes broke through the key resistance area of ​​1.3620–1.3602 and headed towards zone 2 (1.3808–1.3789). Then, the price may reach zone 3 (1.4023–1.4002). In case of correction to the support area of ​​1.3569–1.3549, long positions with the targets of 1.3662 and 1.3775 (weekly high) are relevant. A decline is possible if the asset consolidates below 1.3549.

Support and resistance

Resistance levels: 1.3775, 1.3886, 1.3960.

Support levels: 1.3615, 1.3440, 1.3378.

Trading tips

Long positions may be opened from 1.3615, with the target at 1.3775 and stop loss 1.3566. Implementation period: 9–12 days.

Short positions may be opened below 1.3566, with the target at 1.3440 and stop loss 1.3615.