After renewing the maximum of August 23, the USD/CAD pair is correcting, preparing to continue the uptrend with the target at 1.3200 against the background of the strengthening US dollar. Quotes of the American currency began to grow actively, reacting to the rhetoric of the financial authorities as part of the speeches at the annual economic symposium in Jackson Hole, which ended last week. Global central bankers heightened investor fears of a slowdown in economic growth but continued monetary tightening, which catalyzed the USD Index, reaching a new high since late 2002 at 109.400.
Some influence on the positions of the trading instrument is exerted by the dynamics of prices for WTI Crude Oil, which are currently strengthening to 97.10, supporting the Canadian dollar and the Canadian economy, which is the largest oil producer. If oil quotes decline again, the national currency will correct downwards.
The long-term trend remains upwards, and within its framework, the high of August 23 was renewed at the resistance level of 1.3065. The traders held the level, so now we can observe a downward correction, but if the quotes break through it, the growth will continue to 1.3200.
The medium-term trend is upwards. After the breakout of the target zone 1.2966–1.2945, the trading instrument went to zone 2 (1.3192–1.3170). At the moment, a downward correction can be observed; if, within its framework, the price tests the key support of the trend 1.2853–1.2832, then it will be possible to consider new long positions with the first target around the high of the current week 1.3074.
Resistance levels: 1.3065, 1.3200. | Support levels: 1.2905, 1.2740.