Current trend

The USD/CAD pair is strengthening, holding around ​​1.3516 after the publication of positive data on the US economy, and the Canadian dollar is under pressure from macroeconomic statistics.

Thus, the US Q3 gross domestic product (GDP) amounted to 3.0%, justifying forecasts, and the previous value changed from 1.4% to 1.6%. The deflator of the indicator reached 2.5%, which also coincided with analysts’ expectations. At the same time, according to preliminary data, the August Canada’s GDP decreased to 0.0% from the July figure, revised from 0.0% to 0.2%.

In August, the long-term trend reversed downwards. The price broke the key support level of 1.3615 and reached 1.3438. At the beginning of September, as part of the correction, the quotes tested the resistance level of 1.3615, reversed, and headed towards the support level of 1.3438, where growth resumed towards the targets of 1.3550 and 1.3615. The level of 1.3615 acts as a trend border, so short positions are relevant when approaching it.

As part of the medium-term downward trend, last week, the quotes declined from the key resistance area of ​​1.3641–1.3623, reached all sales targets, and renewed the August low of 1.3440, from where the correction began. This week, the asset may reach the key resistance area of ​​1.3620–1.3602, after which short positions with the targets of 1.3520 and 1.3420 are relevant. However, after a breakout of ​​1.3620–1.3602, the medium-term trend will change to an upward trend, and it is worth opening long positions, with the target in zone 2 (1.3808–1.3789).

Support and resistance

Resistance levels: 1.3550, 1.3615, 1.3780.

Support levels: 1.3440, 1.3378, 1.3315.

Trading tips

Short positions may be opened from 1.3550, with the target at 1.3440 and stop loss 1.3581. Implementation period: 9–12 days.

Long positions may be opened above 1.3581, with the target at 1.3700 and stop loss 1.3530.