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USDCAD Ambiguous Trading dynamics

9/13/2022 12:34 PM

During the Asian session, the USD/CAD pair is trying to consolidate below 1.3000. Yesterday, the trading instrument developed a confident "bearish" momentum formed on September 7. However, by the close of the daytime session, the "bulls" bounced back slightly, and following the results of Monday, the local low of August 26 was renewed.

The positive dynamics of the Canadian dollar are not hindered by Friday's poor report on the national labor market, which reflected a decrease in the number of employees by 39.7K, which was worse than the previous value of –30.6K, although analysts' forecasts assumed an increase in the indicator by 15.0K. Unemployment rose from 4.9% to 5.4% in August, beating its forecasts of an increase to 5.0%, and the average hourly wage rose from 5.44% to 5.58%. Also, the Q2 percentage of production capacity utilization increased significantly: it improved from 81.9% to 83.8%, which was better than market expectations of 82.5%.

On the daily chart, Bollinger bands reverse horizontally: the price range narrows, reflecting a sharp change in the short term trading direction. The MACD indicator falls, keeping a strong sell signal (the histogram is below the signal line). Stochastic approached its lows and reversed to the horizontal plane, indicating that the USD may become oversold in the ultra-short term.

Resistance levels: 1.3000, 1.3050, 1.3100, 1.3150. | Support levels: 1.2950, ​​1.2900, 1.2850, 1.2800.

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