As we noted in today’s “Fundamental Analysis“, the bullish trend of USD/CAD prevails in general, and given the strong upward momentum, it is logical to assume further growth. At the time of writing this article, USD/CAD is trading near 1.3751, an important near-term support level. Its breakdown and the breakdown of the local support level 1.3657 may provoke a deeper corrective decline.
In the main scenario, and after the breakdown of the local resistance level 1.3830, the growth of USD/CAD will resume towards the upper border of the rising channel on the daily chart and the local resistance level 1.3977.
The driver of today’s movements in the USD/CAD pair may be the publication at (12:30, 14:30, 18:00 GMT) of important macro statistics for the US and Canada and a speech (at 22:30) by Bullard, a representative of the Fed’s leadership (for more details, see The most important economic events of the week 17.10.2022 – 23.10.2022).
Support levels: 1.3751, 1.3609, 1.3526, 1.3500, 1.3450, 1.3090, 1.3000, 1.2910
Resistance levels: 1.3800, 1.3830, 1.3900, 1.3977, 1.4000