Today the pair is in a downward correction.
The pair is supported by strengthening due to increased expectations of an interest rate hike in the US dollar, tendency of the Bank of Canada to ease its monetary policy further, and Monday’s data on Manufacturing Sales in Canada that came out a lot worse than its forecasts.
At the same time, the pair is pressured by slightly strengthened oil prices as the latest data on oil reserves in the US showed a small decline.
Thus, in the medium-term the pair is likely to continue growing while any fall in the pair should be considered as an opportunity to open long positions.
Today attention needs to be paid to data on Housing Starts in Canada and the US, EIA Crude Oil Stocks Change and the FOMC Minutes.
The downward correction in the pair could continue to the levels of 1.3280 (ЕМА50 on the 4-hour chart), 1.3265 (lower border of an ascending channel on the 4-hour chart), 1.3200 (ЕМА144 and ЕМА200 on the 4-hour chart), 1.3140 (23.6% Fibonacci correction).
However, as long as the pair remains above key support levels at 1.2910 (ЕМА144), 1.2965 (38.2% Fibonacci correction) long positions are preferable.
On the hourly and 4-hour charts, OsMA and Stochastic signal sales and start turning to sales on the daily chart.
Support levels: 1.3265, 1.3200, 1.3140, 1.3100, 1.3050, 1.2965, 1.2910.
Resistance levels: 1.3350, 1.3400, 1.3450.