During the Asian session, the USD/CAD pair is moderately declining, testing the level of 1.3100 for a breakdown. The negative dynamics of the trading instrument are due to several technical factors. However, the fundamental situation in the market changes slightly.
The US currency is supported by expectations of further tightening of monetary policy by the US Federal Reserve. However, its meeting will be held on September 21, while the Bank of Canada will announce its decision tomorrow. Analysts' forecasts suggest an increase of 75.0 basis points to 3.25%. Also, this day will be published July statistics on the dynamics of imports and exports and Ivey PMI for August. At the end of the week, the August report on the labor market will be released: it is assumed that the employment rate will increase by 15.0K after a sharp decline of 30.6K last month, but the unemployment rate may rise to 5.0% from 4.9% in July.
On the daily chart, Bollinger Bands are rising steadily: the price range is narrowing, reflecting the emergence of ambiguous trading dynamics in the ultra-short term. The MACD indicator is trying to reverse downwards and form a new sell signal (the histogram is below the signal line). Stochastic shows similar dynamics, quickly retreating from its highs, indicating the prospect of a corrective decline in the ultra-short term.
Resistance levels: 1.3150, 1.3200, 1.3241, 1.3300. | Support levels: 1.3100, 1.3050, 1.3000, 1.2950.