Current trendYesterday the USD/CAD pair insignificantly strengthened.
The instrument was supported by strong US housing market release, so it reached its highs in December, breaking the strong psychological level of 1.2900. However, the price began to fall after the tax reformation draft low meet the procedural error in US Senate, which has postponed the voting.
Investors are focused on the new tax law implementation in Senate and House of Representatives. US EIA Crude Oil Stocks change release at 17:30 (GMT+2) is worth traders’ attention, too.
Support and resistance.On the 4-hour chart the pair is in the downward correction. Key support level is 1.2850. Bollinger Bands are reversing. The price range stays the same, which reflects the maintenance of the current trend. MACD histogram is in the positive zone, buy signal is still relevant. Stochastic is ready to enter the oversold area.
Resistance levels: 1.2885, 1.2920, 1.2950, 1.2990.Support levels: 1.2695, 1.2722, 1.2750, 1.2780, 1.2815, 1.2850.
USD/CAD 4-Hour Chart
Trading tipsLong positions can be opened at the current level with the target at 1.2930 and stop loss 1.2845. Implementation period: 1 day.Short positions can be opened at the level of 1.2850 with the targets at 1.2805, 1.2790 and stop loss 1.2875. Implementation period: 1–2 days