Today, during the Asian session, the USD / CAD pair is growing steadily, updating local highs since April 22.
The day before, the instrument showed multidirectional dynamics, which was caused by the publication of the latest minutes of the US Federal Reserve meeting. As expected, they reflected the agency’s wait-and-see stance on reductions in existing incentives. In addition, the regulator expects a gradual return of inflation to the target level of 2%. Positive macroeconomic statistics from Canada put additional pressure on the exchange rate. Thus, the Ivey business activity index for June rose from 64.7 to 71.9 points, which turned out to be better than the average forecasts of analysts.
On Thursday, traders will focus on US statistics on the dynamics of primary and secondary applications for unemployment benefits. Key data from Canada is due Friday when the June labor market report is released. It should be noted that analysts’ forecasts for Canadian statistics are very optimistic.
Support and resistance levels
On the daily chart, the Bollinger Bands are rising moderately. The price range is expanding, but it is not keeping pace with the burst of bullish sentiment at the moment. The MACD indicator is growing, maintaining a strong buy signal (the histogram is above the signal line). Stochastic also maintains a strong upward trend, but is close to its highs, signaling that the US dollar is overbought in the short term.
The current readings of technical indicators do not contradict the further development of the “bullish” dynamics in the nearest time intervals.
- Resistance levels: 1.2554, 1.2600, 1.2650
- Support levels: 1.2500, 1.2448, 1.2400, 1.2352
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