Current trend

During the Asian session, the USD/CAD pair is correcting around 1.3472. The Canadian dollar was able to significantly improve its position, despite neutral data on the labor market.

Thus, the unemployment rate in February increased from 5.7% to 5.8%, coinciding with analysts’ forecasts taken into account by the market. The dynamics developed due to a drop in the part-time employment indicator by 29.9K after an increase of 48.9K earlier. Full-time employment increased by 70.6K, after declining by 11.6K earlier, causing the total to correct from 37.3K to 40.7K.

The American dollar stabilized at 102.70 in USDX amid expectations for today’s release of the February inflation report: the consumer price index is forecast to rise by only 0.4%, which will keep the rate at 3.1% YoY, and the core rate will reach 3.7% after 3.9% earlier, supporting the US currency.

Support and resistance

On the daily chart, the trading instrument is correcting, approaching the support line of the local ascending corridor with dynamic boundaries of 1.3600–1.3450.

Technical indicators have almost changed their signal to a downward one: the EMA fluctuation range on the Alligator indicator has narrowed almost completely, and the AO histogram is forming corrective bars below the transition level.

Resistance levels: 1.3520, 1.3600.

Support levels: 1.3430, 1.3310.

Trading tips

Short positions may be opened after the price declines and consolidates below 1.3430 with the target at 1.3310. Stop loss – 1.3500. Implementation period: 7 days or more.

Long positions may be opened after the price rises and consolidates above 1.3520 with the target at 1.3600. Stop loss – 1.3480.