Current trend

During the Asian session, the USD/CAD pair is growing moderately, testing the level of 1.3300 for a breakout.

Positive dynamics are developing against yesterday’s Fed’s meeting minutes release, which, as expected, supported the “bullish” sentiment on the US currency: the regulator’s officials noted the risks of inflationary pressure, declared their commitment to the speedy achievement of inflation target levels of 2.0% and confirmed the expediency of another, also to July, increase in the interest rate this year, as the country’s Q2 gross domestic product (GDP) increased but at an insufficient pace, and the situation on the labor market remains tense.

On Thursday, investors will pay attention to the report from the company Automatic Data Processing (ADP) on employment in the private sector, and on Friday – to the final data from the US Federal Bureau of Labor Statistics: forecasts suggest an increase in the nonfarm payrolls by 225.0K after an increase of 339.0K last month, and the unemployment rate may fall from 3.7% to 3.6%, renewing the low.

At the end of the week, corresponding statistics from Canada will also be presented: experts expect that employment in the country in June will adjust by 20.0K after a decrease of 17.3K last month, the unemployment rate may rise from 5.2% to 5.3 %, and the average hourly wage – by 5.0%.

Support and resistance

On the daily chart, Bollinger Bands reverse into an upward plane: the price range is expanding, letting the “bulls” renew local highs. The MACD indicator is growing, keeping a strong buy signal (the histogram is above the signal line). Stochastic retreated from its highs for a short time, reverses upwards again, and approaches the level of “80”, which signals that the US currency may become overbought soon.

Resistance levels: 1.3300, 1.3350, 1.3400, 1.3450.

Support levels: 1.3250, 1.3200, 1.3150, 1.3100.

Trading tips

Long positions may be opened after a confident breakout of 1.3300 with the target at 1.3400. Stop loss – 1.3250. Implementation period: 2–3 days.

Short positions may be opened after a rebound from 1.3300 and a breakdown of 1.3250 with the target at 1.3150. Stop loss – 1.3300.